Thailand’s economy has seen a positive shift in October, thanks to the combined efforts of tourism, exports, and private consumption. The Bank of Thailand recently reported that exports surged by 14.2% compared to the previous year, with imports also increasing by 17.1%, resulting in a trade surplus of US$1.4 billion.
Industrial production has been on the rise, driven by both domestic demand and exports, excluding automobiles. The current account surplus for October stood at $0.7 billion, showing a slight increase from the previous month. Private consumption saw a growth of 0.8% in October compared to September, while private investment rose by 4.5%, indicating a positive trend in economic activities.
The government’s economic stimulus measures have played a significant role in boosting these sectors, with government spending also showing an upward trajectory. Moreover, tourism has continued to contribute to the service sectors, further strengthening the overall economic performance.
Despite these encouraging developments, the Bank of Thailand highlighted some structural challenges that are affecting business and household incomes in certain segments. To address these issues, the central bank reduced its policy interest rate to 2.25% during its October 16 review, aiming to support economic growth and stability.
Looking ahead, the Bank of Thailand revised its GDP growth forecast for 2024 to 2.7%, up from the previous estimate of 2.6%. However, the growth outlook for 2025 was slightly adjusted to 2.9% from 3.0%. While the economy expanded by 3% in the July-September quarter, marking the fastest growth rate in two years, there are concerns about sustaining this momentum in the coming year.
As Thailand continues to navigate through various economic challenges, the government and relevant authorities are expected to implement measures that support growth, address structural issues, and capitalize on the positive momentum observed in key sectors. By leveraging the strengths of tourism, exports, and private consumption, Thailand aims to build a resilient economy that can withstand external shocks and internal pressures, ensuring sustainable growth and prosperity for its citizens.