Thailand’s economy saw improvement in October, supported by growth in tourism, exports, and private consumption, aided by the government’s economic stimulus measures, according to the Bank of Thailand (BOT) on Friday.
Exports, a significant driver of the economy, surged by 14.2% year-on-year in October, while imports increased by 17.1%, resulting in a trade surplus of $1.4 billion, the BOT reported. Industrial production also rose, aligning with stronger domestic demand and exports, excluding automobiles.
The current account surplus grew slightly to $0.7 billion in October, compared to $0.6 billion in September. Private consumption increased by 0.8% from the previous month, while private investment climbed by 4.5%. Government spending also showed a sharp rise.
Tourism, another critical economic pillar, bolstered the service sector. However, structural challenges continued to affect income levels for certain businesses and households, the BOT noted.
In a surprise move during its October 16 policy review, the BOT reduced its policy interest rate by 25 basis points to 2.25%. It also revised its 2024 GDP growth forecast upwards to 2.7% from 2.6%, though it slightly lowered its 2025 outlook to 2.9% from 3.0%.
The economy expanded by 3% year-on-year in the third quarter, marking its fastest growth in two years. However, officials and analysts expressed concerns about sustaining this momentum in the coming year.
