Thailand recorded a current account surplus of $2 billion in June, up from $700 million in May, as reported by the Bank of Thailand (BoT) on Wednesday.
Exports saw a slight increase of 0.3% in June compared to the previous year, following a 7.8% rise in May. Imports fell by 0.1%, resulting in a trade surplus of $2.4 billion for June, according to a statement on the BoT’s website.
The modest growth in exports was attributed to declines in shipments of certain agricultural products, particularly durian to China, and electronic goods. However, there were increases in exports of commercial vehicles to Australia, passenger cars to ASEAN countries, and petroleum products to China, Japan, and ASEAN, the statement noted.
While the economy expanded in the second quarter compared to the first, growth was uneven, largely driven by tourism and private consumption, as stated by the BoT.
The private consumption index fell by 0.2% in June compared to May. Spending on non-durable goods increased due to higher sales of consumer goods and fuel, while spending on durable and semi-durable goods, as well as services, saw a decline.
“At the same time, consumer confidence continued to wane due to concerns over rising living costs triggered by increasing energy prices, as well as worries about the sluggish recovery of the Thai economy,” the central bank reported.
The National Economic and Social Development Council (NESDC) will release official economic figures for the second quarter and first half of the year on August 19. In the first quarter, gross domestic product growth was 1.5% year-on-year, falling short of most predictions.
The Ministry of Finance recently revised its growth forecast for the entire year upward, from 2.4% to 2.7%, citing expectations of improved tourist arrivals and exports in the latter half of the year.
In a related announcement, the BoT stated on Wednesday that it will raise the limit for individuals and businesses to freely transfer funds up to $200,000 per year, up from $50,000, to facilitate foreign exchange management.
Additionally, businesses in Thailand will now be permitted to lend baht to their parent companies abroad without needing prior approval from the central bank.
