Thailand’s current account turns to deficit; consumption grows

THAILAND’S private consumption and investment grew in November, but exports increased less than in October, leading to a current account deficit, the central bank said on Thursday (Dec 28).

The country recorded a current account deficit of US$1.2 billion in November, after a surplus of US$0.7 billion the previous month, the Bank of Thailand said in a statement.

Exports, a key driver of Thai growth, rose 3.9 per cent in November from a year earlier, after October’s 7 per cent increase on the year, it said.

Revenue generated by foreign tourist arrivals dropped in November and manufacturing decreased, it added.

However, private consumption increased by 0.8 per cent from October and private investment rose by 1.8 per cent, the central bank said, noting that domestic demand was expected to continue underpinning economic activities in December.

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.