In January 2019, the Thai economy continued to expand from the previous month, with domestic demand as the main growth driver, according to Bank of Thailand latest reports yesterday.
Private consumption indicators continued to expand in all spending categories. Private investment indicators expanded from investment in machinery and equipment and construction material sales.
Public spending rebounded from both current and capital expenditures. However, the tourism sector moderated due mainly to the decline in the number of Malaysian tourists. The value of merchandise exports contracted, consistent with the decline in manufacturing production for exports, while production for domestic market continued to expand.
On the stability front, headline inflation decelerated due to the decrease in retail petroleum prices in line with the fall in global crude oil prices. The seasonally adjusted unemployment rate slightly decreased from the previous month. The current account registered a smaller surplus attributed to lower trade balance. The overall capital and financial accounts registered a surplus.