In July, Thailand’s economy improved due to rising exports and tourism, despite declining consumer confidence and escalating inflation, particularly in fresh food prices. Private investment showed positive signs, yet jobless claims increased.
Economic Improvement in Thailand
In July, Thailand’s economy showed signs of recovery, driven by rising exports and tourism, as well as increased private investment. However, consumer and business confidence declined while inflation rose, mainly due to higher fresh food prices. Despite an improving labor market, there was a slight increase in unemployment claims and a significant rise in government spending.
Tourism and Investment Trends
The export of electronics, agro-manufactured goods, and petrochemical products saw growth, although pick-up truck exports declined. Foreign tourist arrivals remained steady, with tourism revenue increasing due to higher spending, particularly from visitors from Russia and Germany. Private investment indicators also improved, notably in machinery, equipment, and construction, though sentiment in sectors like automotive and retail remained low.
Inflation and Labor Market Updates
Headline inflation increased in July, reflecting rising fresh food prices and core inflation rates. The current account surplus diminished, attributed to a reduced trade surplus. The labor market continued to improve, with job growth in manufacturing and services, despite a slight rise in jobless claims, necessitating careful monitoring of these trends.
Source : Thai economy improved in July driven by exports and tourism
