Thailand’s economic recovery remained anemic in October, with most indicators showing gradual improvements, the Bank of Thailand said Monday.
According to its monthly report, Thailand’s October private consumption index rose 2.2% from a year earlier, weaker than September’s revised 3.0% increase. On a sequential basis, Thailand’s PCI rose 0.7%, Nasdaq reported.
The central bank said in a statement that private consumption has been increasing as spending on non-durable goods is rising because of non-farm households’ strengthening purchasing power and a gradual improvement in consumer confidence.
The country’s private investment index increased 1.5% in October from last year, stronger than a revised 1.3% year-over-year rise in September. The index rose 1.0% on a monthly basis.
Despite the stronger PII, the central bank said that private investment remained slow due to excess production capacity as well as soft demand domestically and globally.
Meanwhile, international trade continued to contract in October, with exports falling 8.0% and imports plunging 21.3% from the same period a year earlier. However, Thailand managed to record a trade surplus of $4.3 billion and a current account surplus of $5.1 billion, according to the bank’s report.
The BOT attributed the weak trade data to the slowdown in China and many Southeast Asian economies, which are Thailand’s major trading partners. The tourism sector, which has been one of the few bright spots in the local economy this year, reported slower growth in arrivals. Thailand received 2.2 million tourists in October, representing a 1.0% year-over-year increase, which is a whopping drop from September’s 8.7% growth.
