BANGKOK (Reuters): Thailand’s economy improved in September from the previous month due to a rebound in manufacturing, rising exports, and increasing foreign tourism receipts, but it was weaker over the entire July to September quarter, the central bank said on Friday.
Domestic demand also slowed over the month, with both private consumption and investment showing declines, the Bank of Thailand said in a statement.
Exports, a key driver of the economy, jumped 19.2% in September from a year earlier while imports increased 18.0%, the central bank said, leading to a trade surplus of $3.6 billion.
The current account surplus THCURA=ECI was $1.9 billion in September.
For the whole of the third quarter, the economy softened compared to the previous quarter after a decline in manufacturing output, reflecting temporary production halts in certain products, as well as weaker domestic demand, the central bank said.
The central bank had earlier forecast year-on-year growth of 1.5% in the third quarter and a 0.5% dip compared to the previous three months. Third-quarter gross domestic product data is due on November 17.
The central bank forecast economic growth of 2.2% this year and 1.6% next year. Southeast Asia’s second-largest economy expanded 2.5% last year, lagging peers.
The central bank unexpectedly left its key rate unchanged at 1.50%. Governor Vitai Ratanakorn earlier said rates could be cut if needed to lift inflation and growth. The next policy review is due on December 17.
The economy has struggled with the US tariffs, high household debt, and a strong baht currency, prompting the government to introduce a series of stimulus measures, including a 44 billion baht ($1.34 billion) consumer subsidy programme.
On Thursday, the finance ministry raised its 2025 GDP growth forecast to 2.4% from 2.2% and predicted 2% growth next year.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and Thanadech Staporncharnchai; Editing by David Stanway) – Reuters