Thai economy quickens in April, growth seen faster in Q2, central bank says
April exports rose 5.8% year-on-year, while private consumption and investment increased from the previous month
THAILAND’S economy is expected to expand faster in the second quarter as growth quickened in April due to stronger tourism, domestic demand and exports, the central bank said on Friday (May 31).
Economic activity in May remained supported by tourism, while a recovery in exports and industrial manufacturing as well as government spending would need monitoring, the Bank of Thailand (BOT) said.
Growth in the April-June quarter should be higher than the first quarter’s 1.5 per cent, which beat the BOT’s forecast, senior director Sakkapop Panyanukul told a press conference.
“But we have to wait and see developments in Q2 as it’s turning point to see if numbers will be clearly positive and sustainable,” he added.
In April, South-east Asia’s second-largest economy recorded a current account deficit of US$40 million, after a surplus of US$1.1 billion in the previous month, the BOT said.
April exports rose 5.8 per cent year-on-year, while private consumption and investment increased from the previous month, it said.
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Government spending continued to contract due to a delayed 2024 budget while investment from state firms expanded due to a front-loaded disbursement of utility projects, it said.
Sakkapop also said he expected headline inflation to be positive for the rest of the year. Annual consumer prices rose in April for the first time in seven months but remained below the central bank’s target range of 1 per cent to 3 per cent.
The BOT has forecast economic growth of 2.6 per cent this year, after last year’s 1.9 per cent growth.
Finance Minister Pichai Chunhavajira has said stimulus measures were needed as economic growth should be around 3.5 per cent but was only expected to be 2.5 per cent this year.
Prime Minister Srettha Thavisin has called on the central bank to cut rates to boost activity, but the Bank of Thailand has held rates at 2.50 per cent, the highest in more than a decade. The next rate review is on June 12.
Pichai has said he is more worried about people’s access to credit than the level of interest rates. REUTERS
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