Thailand's economy on recovery path as tourism rises

By Reuters   July 31, 2023 | 05:44 pm PT
Thailand's economy on recovery path as tourism rises
Tourists wait to check in for flights at Bangkok’s Suvarnabhumi airport, Thailand, January 4, 2023. Photo by Reuters
Thailand's economic recovery remained on track in June as the tourism sector expanded on higher foreign tourist arrivals while exports declined, the central bank said on Monday.

Economic activity was seen gradually improving, driven by tourism, as exports were not expected to improve until late in the year, said Chayawadee Chai-Anant, an assistant governor at the Bank of Thailand (BOT).

"In the period ahead, tourism should continue to recover and remain a key driver force, while exports are likely to be stable," she told a briefing.

Thailand recorded a current account surplus of $1.4 billion in June, after a deficit of $2.8 billion in May, the BOT said.

Exports, a key driver of growth, dropped 5.9% year-on-year in June, the same pace as in May.

Private consumption dipped 0.3 percent in June from the previous month while private investment contracted 1.8 percent on the month, the BOT said.

In the second quarter of 2023, Southeast Asia’s second-largest economy displayed a moderate improvement from the previous quarter as foreign tourist numbers increased and the service and private consumption expanded, the central bank said.

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