Thailand’s economy slowed down in March compared with the previous month as exports declined, but the service sector continued to improve from higher foreign tourist numbers.
The Bank of Thailand (BOT) said in a statement that economic activity is expected to have improved in April and exports should gradually pick up.
Assistant Governor Chayawadee Chai-Anant told a news conference that exports, a key driver of growth, may have bottomed out. March’s exports dropped 5.8% year-on-year.
For the first quarter, the BOT said the economy continued to improve from the previous period, mainly due to the tourism sector which bolstered services and private consumption.
Chayawadee also said Southeast Asia’s second-largest economy in the January-March period is expected to have performed better, both quarter-on-quarter and year-on-yea.
She added that the second quarter should see a steady recovery, particularly tourism, which may give some upside.
Official first-quarter gross domestic product (GDP) data is due to be released on May 15 by the state planning agency.
Last month, the BOT trimmed its projections for economic growth to 3.6% this year and 3.8% next year – down from earlier forecasts of 3.7% and 3.9%, respectively.
However, it forecast higher foreign tourist arrivals at 28 million this year and 35 million next year. Pre-pandemic 2019 saw nearly 40 million foreign visitors.
Thailand recorded a current account surplus of US$4.8 billion in March, the highest in 37 months, after a surplus of $1.3 billion in the previous month. (NNT)
