The Bank of Thailand assessed the economy as broadly stable in August. Merchandise exports excluding gold remained high, foreign tourist arrivals increased and domestic demand improved, but manufacturing production and service sector activity softened. Headline and core inflation both rose as adverse weather, higher energy prices and other production costs fed into consumer prices. Private investment increased, particularly in machinery and equipment, while private consumption edged higher on services and durable goods spending. Government expenditure continued to expand, supported by increased disbursements from the central government and state owned enterprises. The current account remained in surplus, mainly because of the trade surplus, and the labor market was broadly stable, although the continued rise in unemployment benefit claimants warrants monitoring.
Bank of Thailand reports broadly stable August economy as inflation rises
The Bank of Thailand assessed the August economy as broadly stable, with high exports, more foreign tourists and stronger domestic demand offset by softer production and services activity. Headline and core inflation rose as food, energy and production costs increased. The current account remained in surplus, while rising unemployment benefit claims warranted monitoring.