BANGKOK: Thailand’s economy expanded in May 2024, though at a slower pace than the previous month, due to declines in exports, manufacturing production and private investment, according to the Bank of Thailand.
In a statement, the central bank noted that the tourism sector showed positive signs with continued growth from the previous month.
Private consumption also rose slightly, reflecting cautiously optimistic consumer sentiment.
It said government spending saw significant year-on-year (YoY) growth, driven by accelerated budget disbursements, particularly for infrastructure projects.
“On the economic stability front, headline inflation increased from energy and raw food inflation due to the low base effect from last year’s government electricity subsidies, as well as higher diesel prices resulting from the gradual removal of government subsidies.
“In addition, prices of meat and vegetables increased due to lower supply in the market,” the bank said.
Core inflation also slightly increased from the previous month.
The current account registered a surplus, mainly from an improved trade balance, although the service, income, and transfer accounts recorded a deficit.
The labour market showed improvement, with higher employment in both the service and manufacturing sectors.
Looking ahead, the tourism sector and rising public spending are expected to continue supporting the economy.
However, the central bank cautioned that exports and industrial production might recover slowly, especially in industries facing structural pressures.
— BERNAMA
