The Thai economy in May remained broadly stable compared to the previous month but likely slowed in June, with weak tourist arrivals weighing on activity despite government support measures, the central bank said on Tuesday.
Thailand recorded a narrower current account deficit of $6.4 billion in May, and the balance is expected to improve due to lower oil imports and declining oil prices, senior director Pranee Sutthasri told a briefing.
Exports rose 9.8% in May from a year earlier while imports increased 34.5%, the central bank said.
The private investment index was up 1.2% in May on the month while the private consumption index rose 0.6%, the central bank added.
Overall tourism receipts and foreign tourist arrivals increased in May, supported by a recovery in long-haul markets and an increase in arrivals from China and Malaysia coinciding with long holiday periods, the BOT said.
Short-haul tourists declined due to weaker demand and reduced flights, it added. Tourism is a key driver of the economy.
Domestic demand improved slightly, supported by increases in private consumption and investment, particularly in the auto sector, the BOT said.
Headline inflation remained elevated but broadly stable, the BOT said.
Factory output dropped 0.8% in May from a year earlier due to weaker car production, elevated inflation and conflict in the Middle East, the Industry Ministry said earlier in the day.
Last week, the central bank held interest rates steady at 1.00% as it upgraded its growth forecast.