Bangkok, October 31  Thailand’s economy showed encouraging signs of improvement in September, supported by a rebound in manufacturing, stronger exports, and an uptick in foreign tourism revenue, according to the Bank of Thailand. However, overall growth for the third quarter remained weaker compared to the previous quarter.

The central bank reported that exports a key engine of Thailand’s economy  surged 19.2% year-on-year in September, while imports rose 18.0%, resulting in a trade surplus of USD 3.6 billion. The country also posted a current account surplus of USD 1.9 billion for the month.

Despite the late quarter rebound, domestic demand slowed, with both private consumption and investment declining in September. The central bank attributed the broader quarterly slowdown to temporary disruptions in manufacturing output and weaker domestic spending.

For the July- September quarter, the economy is estimated to have grown 1.5% year on year, but contracted 0.5% from the previous quarter. Official GDP data will be released on November 17.

Looking ahead, the Bank of Thailand forecasts GDP growth of 2.2% for 2024 and 1.6% for 2025, following last year’s 2.5% expansion  a pace that continues to lag behind regional peers.

In monetary policy, the central bank kept its benchmark interest rate unchanged at 1.50%, though Governor Vitai Ratanakorn signaled potential rate cuts if inflation and growth remain weak. The next policy review is scheduled for December 17.

To counter headwinds from U.S. tariffs, high household debt, and a strong baht, the Thai government has launched multiple stimulus initiatives, including a 44-billion-baht (USD 1.34 billion) consumer subsidy program. The Finance Ministry recently raised its 2025 growth forecast to 2.4%, citing stronger than expected export performance and fiscal support measures.
Source: Reuter