Bangkok: The Bank of Thailand (BOT) spokesperson announced that the Thai economy showed signs of improvement in April 2025, with progress in industrial production and private investment, as well as a 2.5% increase in foreign tourists from the previous month.
According to Thai News Agency, Ms. Chanawadee Chaianan, Assistant Governor for Corporate Relations and Spokesperson of BOT, highlighted that the economy improved in line with advancements in industrial production, service sectors, and private investment. Passenger car production saw a particular boost, aligning with better domestic sales and stockpiling activities following previous export accelerations. Foreign tourist numbers rose by 2.5% after a significant slowdown, but they remained lower than the previous year’s figures. Revenue from tourism increased by 5.4% from March, with notable growth in tourists from Malaysia, the Middle East, and China, driven by the end of Ramadan and Easter holidays.
The US trade policy has not yet had a substantial adverse impact on the Thai economy. Private investment continued to grow, with a 2.9% increase from the previous month, driven by machinery, equipment, and vehicle investments. Imports of raw materials and components accelerated, suggesting that exports to the US could maintain momentum in the short term. Key areas to monitor include major economies’ trade policies, tourism sector developments, and adjustments by industrial sectors facing structural challenges.
Private consumption fell by 1.5% due to lower spending on services, particularly in hotels and restaurants, although durable goods sales, especially personal cars, increased. Non-gold exports decreased by 2.1%, affected by declines in agricultural, automotive, and electronic product exports. In contrast, merchandise imports excluding gold rose by 0.7%, supported by machinery and electronic component imports.
Government spending increased by 31.6% year-on-year, driven by routine and investment expenditures in public utilities and transportation, although state enterprise investments declined. Farm income contracted by 0.5% due to increased supply of key agricultural products, while the general inflation rate was slightly negative at 0.22%, influenced by lower energy costs and a high base effect in fresh food prices. Core inflation rose with higher prepared food prices.
The labor market improved slightly, with a 0.3% increase in insured persons, though unemployment claims also rose. The current account deficit was primarily due to a trade deficit of -1.5 billion US dollars, but the deficit in service, income, and transfers balances decreased due to reduced profit repatriation of foreign companies in Thailand.