Bank of Thailand Indicates Q4 GDP Growth, Warns of 4 Economic Risk Factors

The Bank of Thailand (BOT) reports that the Thai economy in December 2023 expanded compared to the previous month, driven by increased exports, particularly in technology and agricultural goods. Private consumption in the service sector improved due to government measures, and private investment in machinery, equipment, and vehicles increased, especially with electric vehicle registrations accelerating before the EV 3.0 measure expires. Industrial production expanded based on domestic and international demand, with temporarily closed factories resuming normal operations. However, tourism revenue declined due to a reduction in foreign tourist numbers. Economic stability indicators showed slightly negative overall inflation rates in the food sector, partly due to vegetable price increases from flood impacts. Basic inflation remained positive but slightly slowed. For the fourth quarter, the Thai economy is expected to grow compared to the previous quarter, reflected by increased electronics and electrical goods exports and gradually recovering tourism revenues. Domestic demand has improved in private consumption, investment, and government spending. The BOT highlighted four key risk factors to monitor: 1. Impact of baht currency appreciation 2. Tight business liquidity 3. Industrial production adaptation capabilities 4. Tourism sector recovery