Bangkok, The BoT reveals that the Thai economy in the 4th quarter of 2023 expanded at a slower pace. According to tourism-export value General inflation decreased. According to the government’s measures to reduce the price of gasoline and the price of crude oil in the world market.
The Bank of Thailand (BoT) revealed the economic and financial conditions in December and the 4th quarter of 2023. The overall Thai economy expanded at a slower pace. According to tourism sector income and export value, excluding gold, which decelerated due to a slow recovery of world demand. and partly from structural factors that hold back the recovery of the export sector. industrial production and the tourism sector, such as the Chinese economy becoming more self-reliant As a result, industrial production indicators and private investment is also in a slower direction. Government spending shrank due to capital expenditures of both the central government and state enterprises. However, private consumption indicators and the se
rvice sector continued to expand and were important driving forces of the Thai economy.
Details of the Thai economic situation in December 2023 compared to the previous month are as follows.
The value of merchandise exports excluding gold, after removing seasonal factors, was stable from the previous month. Exports decreased in many products following a slow recovery in world demand. Structural problems that hold back exports and results from drought problems White rice exports to Indonesia and South Africa decreased as rice production decreased. Exports of machinery and equipment to Japan and the United States also decreased, while exports of petrochemicals and chemicals continued to decline. After China turned to producing more within its own country. Including the demand for imports of this group of products in ASEAN decreased, however, exports in some categories continued to increase, such as passenger cars and commercial vehicles to Australia. Diesel fuel goes to ASEAN and hard disk drives to Hong Kong
and China according to delivery cycles
The industrial production index, after removing seasonal factors, continued to decline. Especially the automotive category According to the production of commercial vehicles is important. This is partly due to financial institutions being cautious in granting loans. In addition, the trend of using imported electric cars is increasing. Meanwhile, the petroleum and hard disk drive categories decreased due to the gradual release of inventories from manufacturers. After producing a lot in the previous period, however, the food and beverage category increased. according to sugar production is important
Private investment indicators that remove seasonality factors decreased. After accelerating in the past In line with industrial production and product exports. Investment in machinery and equipment decreased following imports of capital goods and commercial vehicle registrations. Meanwhile, domestic sales of machinery and equipment increased. For investment in the constructio
n category, it decreased from sales of construction materials. Meanwhile, the area permitted for construction has increased.
The value of merchandise imports excluding gold, after removing seasonal factors, decreased from the previous month in all main product categories, especially 1) raw materials and intermediate products, excluding fuel. following imports of electronic equipment parts from Taiwan; 2) fuels following imports of crude oil; and 3) consumer products. According to the import of mobile phones and electric cars from China After accelerating imports last month for the automotive expo.
Private consumption indicators, after removing seasonal factors, were stable from the previous month. Spending in non-durable goods and services increased. Part of this has benefited from measures to reduce the cost of living of the government. Meanwhile, spending on durable goods decreased. Especially the sales of personal cars. This is a factor supporting the purchasing power of the household sector. In particul
ar, consumer confidence continues to improve.
The number of foreign tourists, after removing seasonal factors, continues to increase. According to the number of Asian tourists especially Chinese nationality Partly benefited from the visa exemption measures. However, the number of tourists of some nationalities, such as Europe and the United States, slowed down slightly after accelerating in the previous month. As for tourism sector income, after removing seasonal factors, it increased from the previous month in line with the number of foreign tourists.
Government spending excluding transfer funds shrank compared to the same period last year. The central government’s investment expenditures shrank following the delayed disbursement of the 2024 budget and shrinking investment in state enterprises. According to disbursements in energy and public utility projects Meanwhile, the current expenditures of the central government expanded in line with the disbursement of educational agencies. and disbursement of the
central budget for annuities, gratuities, pensions, and medical expenses for civil servants.
Economic stability General inflation decreased from the previous month due to prices of fresh food categories. according to increased productivity and from the price of energy category following the decrease in crude oil prices in the world market. As for core inflation, it remained stable. The labor market remained stable from the previous month. However, signs of employment began to be seen in the sector. Production slows down As for the current account balance, there was a surplus from the trade balance. In addition, the balance of services, income and transfer funds decreased. Regarding the exchange rate of the baht against the US dollar The average strengthened due to the policy direction of the US Federal Reserve. The market expects that the interest rate up cycle has ended.
Source: Thai News Agency