The Bank of Thailand reveals the Thai economy in April 65 improved due to concerns about the decline in Omicron – continued good exports

Ms. Chayavadee Chai-anan, Senior Director of Corporate Communications Department Bank of Thailand (BOT) revealed that the Thai economy in April 2022 improved from the previous month. Private consumption indicators improved from spending on services. This was in line with the concern over the decreasing Omicron epidemic. Private investment indicators improved following the construction category. for foreign tourists gradually increased after the government relaxed further restrictions on international travel. In addition, the value of merchandise exports excluding gold increased in line with the demand from the trading partners’ economies that continued to expand. However, industrial production remained stable. This is partly due to the shortage of production parts. Meanwhile, government spending excluding transfers contracted due to both fixed and federal investment expenditures. This was partly due to the high base of the previous year. and the gradual disbursement in the previous period

economic stability Headline inflation in April 2022 was slightly lower from the previous month mainly in line with energy sector inflation. while core inflation remained stable. The overall labor market has improved but remains fragile. For the current account balance returned to deficit. This was mainly due to a decrease in the trade balance surplus following a decline in gold exports and a sharper deficit in services, income and transfers. The details of the Thai economy are as follows:

Private consumption indicators, eliminating seasonal factors, increased from the previous month. by spending in the service category and the non-durable goods category This reflected concern over the situation of the declining Omicron epidemic, which resulted in improvements in economic activities. However, consumer confidence continued to deteriorate mainly due to the higher cost of living. which is still a negative factor for private consumption

“Private consumption this month improved 3.0% yoy on the back of lower concerns about omikron. As the increase of Thai tourists and the improvement of travel This is good for the service sector. This led to an improvement in the non-durable product category.”

For private investment indicators that eliminated seasonal factors, increased from the previous month. The investment in the construction category improved. according to sales of construction materials and building permits for housing whileInvestment in machinery and equipment category decreased. according to the import of capital goods and registration of commercial vehicles

“Private investment increased by 0.9% from the previous month, mainly from investment in construction. This is in line with the opening of the country that makes more entrepreneurs return to construction.”

The number of foreign tourists, eliminating seasonal factors, has gradually increased from the previous month in almost all nationalities. After the government eased further restrictions on international travel, however, the number of tourists from Russia and Eastern Europe declined as a result of the conflict between Russia and Ukraine.

The value of merchandise exports excluding the seasonal factor of gold increased from the previous month. improved in several categories such as petroleum products, metals, agricultural products and processed agricultural products. synthetic rubber including automobiles and parts. However, exports of some products declined. Especially in the electronics and electrical appliances sector, there is still a shortage of manufacturing parts. and measures to control the spread of COVID-19 in China

Industrial production, eliminating seasonal factors, stabilized from the previous month. which improved in several categories, such as rubber and plastics, following the improvement in rubber prices. Construction materials category corresponds to the construction of the private sector. Including the automotive category, in line with the export in this category, however, production declined in some categories, such as the electronics category, due to the shortage of parts. which was aggravated by China’s stringent measures to control the COVID-19 outbreak and the food and beverage category due to less sugar production due to the closing of the cane crushing period.

The value of imports of goods excluding gold, which eliminated seasonal factors, decreased from the previous month fromDeclining petroleum imports following the operator’s order management and decreased imports of capital goods such as machinery and electrical equipment and ventilation. However, imports of consumer goods slightly increased.

Public expenditure excluding transfers contracted compared to the same period last year. According to federal expenditure, both fixed expenditure and capital expenditure This was partly due to the high base of the previous year. In addition, education and transportation agencies gradually disbursed in the previous period. However, state-owned enterprises’ investment expanded well following the disbursement of telecommunication agencies.

economic stability Headline inflation was slightly lower in line with energy sector inflation.important while core inflation remained stable. The overall labor market has improved but remains fragile. For the current account balance returned to deficit. This was mainly due to a decline in the trade balance due to a decline in gold exports, and a larger deficit in services, income and transfers due to the return of profits and dividends from foreign businesses. The exchange rate of the baht against the US dollar continued to depreciate. after the US Federal Reserve signaling more stringent monetary policy In addition, the conflict between Russia and Ukraine has not been resolved. as well as concerns over the Chinese economy that may slow down, causing the Asian currency to depreciate.

Ms. Chayavadee further revealed that in April, the headline inflation rate dropped somewhat. according to the inflation rate in the energy category while the core inflation rate (excluding energy and fresh food prices) remained stable, while the current account balance in April 65 with a deficit of $3.4 billion This was the largest deficit in nine years since April. 56 as a result of a lower trade surplus in April. 65 as a result of lower gold exports And this month is not the export season. There is also a long holiday season. It is also caused by the higher service deficit numbers. According to the return of dividends and profits of foreign companies in Thailand

For the Thai economic outlook in May 65 Economic activity tends to gradually improve. from concerns about the declining Omicron strain of COVID-19 Including the gradual opening of the country. However, the situation of the increase in cost and product prices, the shortage of production parts must be monitored. and the recovery of tourism and service sectors

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.