Thailand Monthly Economic Monitor (English)

Economic growth in Q3 reached a two-year high and surpassed expectations, fueled by a rebound in tourism, exports, and public investment. However, high frequency indicators indicate a slowdown in private consumption, especially for automobiles, as well as a contraction in manufacturing and softening in goods exports. Fiscal measures, particularly cash transfers, are expected to support consumption in the coming months. Inflation remained low compared to peers while the government's fiscal deficit shrank. The Thai baht depreciated against the US dollar for the first time in five months, amid expectations of a slower pace of Federal Reserve interest-rate reductions, and potential changes in trade barriers.