Thai economy still in recovery in August on tourism rebound

THAILAND’S economy was still on a recovery path in August on rebounding tourism and domestic demand, which would continue to support economic activity, the central bank said on Friday (Sep 30).

Rising costs and slower global demand were among factors to be monitored, however, the Bank of Thailand (BOT) said in a statement.

Economic activity in September was likely to follow a steady recovering trend, BOT senior director Chayawadee Chai-Anant told a news briefing.

South-east Asia’s second-largest economy would continue to recover through this year and any political impact had been discounted in the central bank’s growth outlook., she said.

Thailand’s Constitutional Court will rule on Friday whether Prime Minister Prayuth Chan-ocha has exceeded a maximum of 8 years allowed in the post.

“Whatever the outcome is, it will not affect government spending,” she said.

“As we’ve seen, no matter what the politics are, the economy... can still go ahead. This should have more weight for investors,” she added.

In August, exports, a key driver of growth, rose 8.2 per cent from a year ago. The country recorded a current account deficit of US$3.5 billion in August. REUTERS