BANGKOK, Thailand – The Bank of Thailand (BOT) has revealed that Thailand’s economy improved in October 2024, driven by continued growth in tourism and a recovery in private consumption. The economic boost was partly fueled by the government’s 10,000 Baht cash transfer program, which supported consumer spending and contributed to increased retail activity. The industrial sector also showed growth, particularly in exports (excluding automobiles) and domestic demand.
Government spending expanded, driven by both regular and investment expenditures. However, some sectors of the economy are still facing structural issues and a decline in competitiveness.
Regarding inflation, the general price index rose from the previous month due to energy costs, as a result of a low base effect from the previous year when the government implemented support measures. However, food prices decreased, particularly vegetables, as production increased following the resolution of flooding issues. The core inflation rate remained stable, with food prices increasing, while non-food items saw a slight decrease.
The current account surplus remained close to the previous month, with a trade surplus reducing due to increased imports. The services, income, and transfer balances showed a decline in deficits, driven by reduced repatriation of profits. The labor market showed signs of weakening, especially in the non-tourism-related service sectors like retail and construction, reflected in an increase in new unemployment claims.
As for the tourism sector, the number of foreign tourists reached 2.7 million in October, stable compared to the previous month, although there was a slowdown in visitors from Malaysia and China. On the other hand, tourists from countries like South Korea, Singapore, and long-haul destinations, especially from the U.S., the U.K., and Germany, continued to increase. This contributed to a 2.8% rise in tourism revenue compared to the previous month.
Private consumption indicators showed an increase across all categories, partly due to the economic stimulus program, with higher spending on non-durable goods, durable goods, semi-durable goods, and services, including hospitality and restaurants, aligned with the rising number of both domestic and international tourists.
Looking ahead, the BOT sees continued economic activity driven by tourism, with increased air travel bookings and continued growth in international interest in Thailand. However, risks remain from global trade uncertainties, particularly with U.S. policies under President Donald Trump, which could impact export volumes and the global economy.
