Bank of Thailand or (BOT) revealed that the Thai economy in August 65 was still in a recovery direction. Private consumption indicators remained stable. Meanwhile, private investment improved in line with industrial production. In terms of foreign tourists, it continues to improve. and government spending expanded from regular spending. However, export value fell in line with the slowdown in foreign demand coupled with temporary pressure on supply.
In August 20, private consumption indicators that removed seasonal factors from the previous month stabilized. which increased in almost all categories except non-durable product category However, the factors supporting the purchasing power of the household sector have gradually improved. especially employment and consumer confidence
However, high living costs continue to reduce overall consumption. The machinery and equipment category increased from imports of private capital goods. and the number of commercial vehicles registered while the construction category improved slightly. in line with the increase in sales of construction materials and the construction area is allowed to remain stable at a high level especially for housing and industry As for industrial production, which eliminated seasonal factors, increased from the previous month in many categories. especially the automotive category Because the manufacturer received the production parts from the previous month.
In addition, the food and drink category increased in line with increasing domestic demand and tourism which continues to recover However, some production categories have decreased, such as the chemical category. and rubber and plastic category The number of foreign tourists who eliminate seasonal factors has increased slightly since the previous month. in almost every nation as a result of the continued easing of international travel restrictions. Government spending excluding transfers grew year on year on the back of fixed and federal investment spending.
For state-owned enterprises, investment expenditure grew mainly from investment in energy. The value of commodity exports, excluding gold, which removed seasonal factors, fell from the previous month in line with weaker demand from trading partners. especially the export of agricultural products and processed metals to China. In addition, there was temporary pressure on petroleum supply from refinery inventory management. and in the category of agricultural products from unfavorable weather conditions for cultivation
However, some exports increased from the previous month, such as electronic products. electrical and automotive equipment and parts The value of imports, excluding gold, which eliminated seasonal factors, increased from the previous month due to imports of crude oil and natural gas. consumer goods and consumer goods by import of durable goods Imports of raw materials and intermediate goods, including capital goods, fell from the rapid imports in the previous month.
economic stability Headline inflation increased from the previous month due to inflation. The fresh food category mainly followed vegetable and fruit prices, along with an increase in core inflation. from food and non-food categories while energy sector inflation has fallen in line with world crude oil prices. For the labor market to recover gradually in accordance with the economic conditions. This is reflected by the increasing number of insurers in the social security system.
In terms of the current account, the deficit decreased mainly due to the improvement in the balance of services, income and transfers due to the decrease in the profits of foreign investors. while the trade imbalance increased mainly due to an increase in the value of fuel imports. The exchange rate of the baht against the US dollar strengthened in line with the monthly forecast. August that the Federal Reserve of the United States can follow a less strict monetary policy In addition, the market has better prospects for the recovery of the tourism sector in Thailand.
in the meantime Ms Chayawadee Chaianan senior director of the Corporate Communications Service Department, Bank of Thailand, spoke about the outlook for the Thai economy in September. especially the service sector related to tourism. In the next step, we need to keep an eye on rising costs, wages and product prices, slowing foreign demand, and the spread of COVID-19. and implications for economic activities
“Thailand’s economic fundamentals are still strong, although Q2 may not be good, but Q3 and Q4 are expected to continue to improve.” Ms Chayawadee said
As for the case where commercial banks will raise interest rates, the Bank of Thailand will take care of inflation so that it will not rise. because it will be difficult to fix it and ask commercial banks to look after the debtor which has to be done at the same time on both issues
for the political situation Regardless of the change, it will not affect government disbursements. because it has been through the process of consideration and it would not affect the confidence of investors Because this is not the first time that investors have come across political changes. But investors will consider whether monetary and fiscal policy will promote and support stable economic growth and recovery. which in the past has not found any problems that will cause investors to panic
