By Reuters – published by CNA and Thai Newsroom
THAILAND’S economy improved in September from the previous month due to a rebound in manufacturing, rising exports and increasing foreign tourism receipts, but it was weaker over the entire July to September quarter, the central bank said today (Oct. 31).
Domestic demand also slowed over the month, with both private consumption and investment showing declines, the Bank of Thailand said in a statement.
Exports, a key driver of the economy, jumped 19.2 percent in September from a year earlier while imports increased 18.0 percent, the central bank said, leading to a trade surplus of $3.6 billion.
The number of foreign tourists and related receipts increased, particularly among Malaysian and Indian visitors, supported by long holidays and launch of new flight routes.
The current account surplus THCURA=ECI was $1.9 billion in September.
For the whole of the third quarter, the economy softened compared to the previous quarter after a decline in manufacturing output, reflecting temporary production halts in certain products, as well as weaker domestic demand, the central bank said.
The central bank said key issues to monitor are: (1) the recovery of manufacturing production, (2) the impact of US tariff measures on Thai exports, (3) developments in the tourism sector, and (4) the impact of government stimulus and the rebound of domestic purchasing power.
The central bank had earlier forecast year-on-year growth of 1.5 percent in the third quarter and a 0.5 percent dip compared to the previous three months. Third-quarter gross domestic product data is due on November 17.
The central bank forecast economic growth of 2.2 percent this year and 1.6 percent next year. Southeast Asia’s second-largest economy expanded 2.5 percent last year, lagging peers.
The central bank unexpectedly left its key rate unchanged at 1.50 percent. Governor Vitai Ratanakorn earlier said rates could be cut if needed to lift inflation and growth. The next policy review is due on December 17.
The economy has struggled with US tariffs, high household debt, and a strong baht currency, prompting the government to introduce a series of stimulus measures, including a 44 billion baht ($1.34 billion) consumer subsidy programme.
On Thursday, the finance ministry raised its 2025 GDP growth forecast to 2.4 percent from 2.2 percent and predicted 2 percent growth next year.
CAPTION:
A general view inside a shopping mall in Bangkok, Thailand, on June 20, 2025. Photo – Reuters/Chalinee Thirasupa and published by CNA
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