Thailand's Economic Recovery Slows in May Amid Decline in Exports and Manufacturing

Thailand's Economic Recovery Slows in May Amid Decline in Exports and Manufacturing
Image credit: Bank of Thailand website 

According to the Bank of Thailand, activities in the vital tourism industry steadily picked up last month, along with a slight increase in private consumption. Meanwhile, government spending also expanded significantly year-on-year, thanks to the acceleration of budget disbursements, notably investment in infrastructure projects.

Thailand's economy continued its path to recovery in May, but at a slower pace compared to a month earlier, dragged down by a decline in exports, manufacturing production, and private investment, the central bank said on Friday.

In May, headline inflation rose due to higher energy and raw food prices, partly owing to a low base effect from the government's electricity subsidies last year and the gradual removal of subsidies on diesel fuel, the central bank said in a statement.

Looking ahead, the tourism sector and rising public spending will continue to support the Southeast Asian economy. However, exports and industrial production are expected to recover slowly, particularly in some industries that are facing additional pressure from structural factors, the central bank said.

A market in Bangkok Thailand 
Image credit: The New York Times