Thailand Monthly Economic Monitor, September 2024

Economic activity improved, driven by external demand for exports and tourism. Manufacturing growth turned positive, supported by a surge in goods exports. However, internal drivers weighed on growth. Private consumption growth decelerated, impacted by stricter credit conditions. The acceleration of fiscal spending proved slower than expected, but a higher FY25 budget spending could support growth. The revised digital wallet is expected to boost gross domestic product (GDP) growth in the fourth quarter of 2024. The Thai baht appreciated driven by expectations of the Federal Reserve’s easing cycle and a persistent current account surplus. Inflation remained among the lowest in emerging markets, falling to 0.4 percent, due to lower energy prices; core inflation remained subdued due to weak domestic demand.