Bank of Thailand says May economy was broadly stable as tourism improved and exports weakened

The Bank of Thailand reported that Thailand’s economy in May remained broadly stable from the previous month. Tourism receipts increased, supported by higher foreign tourist arrivals from long-haul markets and stronger arrivals from China and Malaysia during extended holiday periods. Domestic demand improved slightly as private consumption and investment rose, particularly in electric vehicle sales, while merchandise exports excluding gold declined, mainly because electronics and jewelry exports fell after earlier strength. Government expenditure increased from the same period a year earlier, driven by both current and capital spending by the central government. On the supply side, manufacturing output declined in line with weaker exports, while services activity was broadly unchanged. Headline inflation stayed elevated but was stable month on month, with slightly lower energy and raw food prices offset by a modest rise in core inflation as some businesses continued to pass through higher input costs. The Bank of Thailand noted limited signs of persistent price pressures and broad-based price increases. The current account deficit narrowed from the previous month because the trade deficit shrank as energy imports fell, while overall labor market conditions remained stable.