BoT reveals Thai economy is recovering in October 2023

Bangkok, BoT reveals that the Thai economy in October 2023 is in the direction of recovery. according to private consumption and investment But tourism-exports decreased.

Miss Chayawadee Chaianan, Assistant Governor Corporate relations line The Bank of Thailand (BoT) revealed the economic and financial conditions for October 2023, with the Thai economy in the direction of recovery following domestic demand for both consumption and private investment. Meanwhile, the service sector slowed down due to the number of Thai and foreign tourists. The value of merchandise exports, excluding gold, decreased. After accelerating a lot in the previous month consistent with industrial production and government spending shrank mainly from capital expenditures of the central government.

Indicators of private consumption, after removing seasonal factors, increased from the previous month in almost all main product categories. Except for spending in the service category which decreased from the hotel and restaurant category. This corresponds to the decrease in the number of Thai and foreign tourists. The increase in consumption is supported by employment and consumer confidence that continues to improve.

Meanwhile, private investment indicators after removing seasonal factors increased from the previous month. Investment in machinery and equipment increased from domestic machinery sales and capital goods imports. Meanwhile, commercial vehicle registrations were stable from the previous month. For investment in the construction category, it increased according to the area permitted for construction and the sales of construction materials.

The number of foreign tourists, after removing seasonal factors, decreased from the previous month. Follow Russian tourists after speeding away in the previous period. and Malaysian tourists who delayed their travel to wait for a special holiday in November after the government made additional announcements. However, tourists of some nationalities improved, such as China, which partly benefited from the visa exemption measure. and European groups Especially the UK and Germany. As for tourism sector income, it decelerated from the previous month. This corresponds to the decrease in the number of tourists and hotel occupancy rates.

The value of merchandise exports excluding gold, after removing seasonal factors, decreased from the previous month in several categories, such as 1) jewelry exports to Hong Kong. After rushing in the month before there was an exhibition of 2) electronic products. from a decrease in hard disk drive exports following product delivery cycles and electronic circuit boards that decreased following exports to the United States and Hong Kong, and 3) agricultural products following fruit exports to China. However, exports of some categories increased, such as automobiles to Australia. and petroleum to ASEAN

Meanwhile, the value of merchandise imports excluding gold after removing seasonal factors decreased from the previous month from 1) the fuel category according to the amount of crude oil imported 2) consumer goods according to imports of electric cars and 3) capital goods excluding aircraft. This is in line with computer imports after accelerating significantly in the previous period. However, imports of raw materials and intermediate goods, excluding fuel, continued to increase, mainly from electronic equipment parts.

The Industrial Production Index, after removing seasonal factors, decreased in several categories. After accelerating production last month, including the food and beverage category based on sugar production. The hard disk drive category decreased according to product delivery cycles. and the chemicals category following primary production of plastics and synthetic rubber. However, production of the petroleum category improved. This follows the return to production after the refinery was closed for maintenance last month.

Government spending excluding transfer funds shrank compared to the same period last year. from capital expenditures of the central government is important This follows lower disbursements from the delayed 2024 budget review, while current central government expenditures expanded. According to the disbursement of annuities, gratuities, pensions, and medical expenses for civil servants and the disbursement of educational agencies. As for investment expenditures of state enterprises, they expanded in line with disbursements in transportation and public utility projects.

Economic stability General inflation decreased in the energy and fresh food categories. The energy category decreased due to the government's diesel price reduction measures. and the price of gasoline decreased in line with the price of crude oil in the world market. Meanwhile, the fresh food category decreased mainly from the high base effect of vegetable prices. Core inflation remained stable from the previous month. The labor market has continued to recover. This is reflected in the increasing number of insured persons in the social security system. As for the current account surplus, it decreased mainly in line with the trade balance. The average exchange rate of the baht against the US dollar depreciated. This is because the market has raised its expectations that US interest rates will increase. It tends to stay high for a long time. coupled with the uncertainty of the effects of the conflict between Israel and Hamas.

Source: Thai News Agency