Thai economy continues to rebound
The Thai economy continued its post-pandemic rebound in May, the Bank of Thailand (BOT) said last week, with rising figures for consumption, investment and exports despite inflation levels that have not been seen in over a decade.
Preliminary indicators point to June also producing positive results, according to Chayawadee Chai-Anant, a Senior Director at the BOT.
“The Thai economy continues to pick up in June, with a backdrop of healthy economic activities despite inflationary pressure,” Chayawadee added.
As was the case with many countries, Thailand’s economy was also adversely affected by the global pandemic. Restrictions on travel decimated the tourism industry, while supply chain breakdowns impacted its exports. Exports have been the most powerful driver of the Kingdom’s economy.
Thailand’s economy is diverse, with many sectors serving as sources of growth, and that diversity has proven to be a provider of resilience over many decades. The Kingdom’s economy has a track record of bouncing back relatively quickly after global and regional economic crises. This recovery appears to be following a similar pattern.
The value of merchandise exports, excluding gold and after seasonal adjustment, increased 3.5 percent from the month before in most categories. The BOT cited higher demand from trading partners as the reason.
The service production index excluding gold in May rose by 2.5 percent on a month-on-month basis, shooting up by 20.9 percent year-on-year. Private consumption, meanwhile, edged up by 0.6 percent from the previous month after seasonal adjustments were factored in.
The BOT also mentioned that private investment indicators improved from the previous month following an increase in imports of capital and higher registration of commercial vehicles.