Thai economy improved in October on tourism, consumption and exports

BANGKOK (Reuters) – Thailand’s economy improved in October due to tourism, exports and private consumption, which was helped by the government’s economic stimulus measures, the Bank of Thailand said on Friday.

Exports, a key driver of the economy, rose 14.2% in October from a year earlier, while imports rose 17.1%, resulting in a trade surplus of $1.4 billion, the Bank of Thailand (BOT) said.

As such, industrial production increased in line with domestic demand and exports, excluding automobiles, it said.

The current account surplus was $0.7 billion in October, up slightly from September’s surplus of $0.6 billion, it said.

Private consumption increased 0.8% in October from September and private investment rose 4.5%, the central bank said, adding that government spending also rose sharply.

Tourism, another key economic driver, helped the service sectors. However, structural impediments pressured business and household income in some groups, the BOT said.

The BOT cut its policy interest rate by 25 basis points to 2.25% in a surprise decision at its Oct. 16 review. It also raised its 2024 GDP growth forecast to 2.7% from 2.6%, but trimmed its 2025 growth outlook to 2.9% from 3.0%.

The economy grew an annual 3% in the July-September quarter, the fastest pace in two years, but officials and analysts saw increased challenges to maintaining the momentum next year.