Despite a decline in exports of goods and manufacturing output, the economy improved on a quarterly and annual basis, according to the assistant governor of the BoT, Chayawadee Chai-Anant. The National Economic and Social Development Council has yet to provide the BoT with its official growth statistics.
The Thai economy continued to grow in the first quarter of 2023 compared to the previous quarter, primarily because to an increase in both domestic and foreign tourists, which boosted services and private consumption. The value of exported goods rose in tandem with factory output and individual investment.
In March, the value of exports decreased by 2.2% year over year, following a decline of 1.8% in February, with a contraction of 2.4% for the first quarter, according to data from the BoT. Nevertheless, exports improved in April and are anticipated to continue improving over the next few months, in line with global demand. Private consumption, on the other hand, increased by 6% year over year in March, up from 3.9% in February. The first quarter saw a 4.7% increase in private consumption.
As the number of local and international tourists increased, the service industry also displayed signs of progress. According to the BoT’s prediction and trends, 8 million foreign visitors have arrived as of April 25. Offshore travelers totaled 2.2 million in March, up from 2.1 million in February, and 6.4 million in the first three months. “The tourist recovery also helped the service and tourism industries’ labor markets. According to Ms. Chayawadee, employment in these areas increased to levels that were comparable to those before the pandemic.
The country’s current account and tourism revenue were both supported by the tourism rebound. With a first-quarter surplus of $4 billion, the current account posted a surplus of US$4.8 billion in March, up from $1.3 billion the previous month. Due to a high base year and a reduction in raw food costs as supply rose, headline inflation in the energy and raw food categories also decreased. Due to a large base in the previous year, core inflation also declined, particularly in the area of processed foods.
Following a change in market expectations towards a tighter monetary policy by the US Federal Reserve in early March, the baht depreciated relative to the US dollar on average. The baht’s volatility against the dollar increased in the second half of the month as a result of worries about financial institution issues in the US and Europe.
