Thailand records current account surplus of US$2.1 billion in December

THAILAND recorded a current account surplus of US$2.1 billion in December, after a deficit of US$1.2 billion in the previous month, the central bank said on Wednesday (Jan 31).

Exports, a key driver of Thai growth, rose 3.0 per cent in December from a year earlier, after November’s 3.9 per cent increase on the year, the Bank of Thailand (BOT) said in a statement.

Imports in December fell 1.7 per cent year-on-year.

Private consumption rose 0.1 per cent from November and private investment dropped 2.4 per cent, the BOT said, noting economic activity would be supported in January by consumption and tourism.

“Thailand’s economic growth slowed in December and the fourth quarter from the previous period as tourist expenditures and exports softened due to subdued global demand together with structural factors,” it said in a statement

South-east Asia’s second-largest economy grew by 1.5 per cent in the July-September quarter from a year earlier, the slowest pace this year and less than expected, on weak exports and government spending.

Central Bank governor Sethaput Suthiwartnarueput told Reuters last week that he expected a similar growth rate for the fourth quarter of 2023, with the full-year expansion seen below a previous forecast of 2.4 per cent.

He also said 2024 economic growth could be below 3 per cent, less than earlier forecast, but South-east Asia’s second-largest economy was not in crisis as portrayed by the government.

The finance ministry last week slashed its 2023 economic growth forecast to 1.8 per cent from 2.7 per cent seen earlier. It also expected growth in 2024 to slow sharply to 2.8 per cent from a previous forecast of 3.2 per cent.

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The government has repeatedly said the economy is in crisis and needs a big boost from its US$14 billion digital handout scheme.

Prime Minister Srettha Thavisin– a real estate mogul and political newcomer - has also urged the central bank to cut the policy interest rate, which is at a decade-high of 2.50 per cent, to help sluggish growth and suffering people and businesses. REUTERS