Thailand‘s economy expanded slowly in February with growth in the service sector and an increase in tourist arrivals offseting a fall in exports from the previous month, the Bank of Thailand (BOT) said on Friday.
Thailand recorded a current account surplus of USD 2 billion in February, after a deficit of USD 0.2 billion in the previous month, the BOT said.
There have been 8.73 million foreign tourist arrivals in Thailand this year up to March 24, up 44 per cent year-on-year, with visitors from China reaching 1.63 million, tourism ministry data showed.
The government is aiming for a record of 40 million foreign visitors this year following the 28 million in 2023.
The economy in March will be helped by tourism, but export recovery and industrial manufacturing will have to be closely monitored, Assistant Governor Chayawadee Chai-Anant told a briefing.
The BOT is monitoring the global economic recovery, government spending and economic stimulus measures, she added.
Southeast Asia‘s second-largest economy unexpectedly shrank 0.6 per cent in the final quarter of 2023 from the third, with full-year growth at 1.9 per cent , lower than the 2.5 per cent growth in 2022.
Last month, the central bank lowered its 2024 growth outlook to 2.5 per cent -3.0 per cent from 3.2 per cent .
Car production in regional autos hub Thailand fell 19.28 per cent in February from a year earlier, largely due to a decline in production of pickup trucks and more imported electric vehicles (EVs), a local industry group said.
Notably, New South Wales welcomed the highest number of international visitors, accumulated the most visitor nights, and boasted the highest visitor expenditure nationwide. The international segment contributed a substantial USD 11 billion to the visitor economy. Additionally, NSW experienced the most substantial growth in international visitor numbers, nights, and expenditure among all states and territories, with an increase of 1.8 million visitors, 42.8 million nights, and USD 6 billion in expenditure.
This week, BOT Governor Sethaput Suthiwartnarueput said first-quarter gross domestic product was “not likely to look pretty” but drag factors would ease later in the year, and the BOT must ensure the policy rate was appropriate for supporting long-term growth. Despite government pressure to ease policy, the BOT last month left its key interest rate unchanged at 2.50 per cent , the highest in more than a decade, in a split vote. It will next review monetary policy on April 10.
