Economic and Monetary Conditions for January 2026

In January, Thailand’s economy grew due to increased domestic and external demand, especially in tourism and private consumption. However, construction contracted, while inflation varied. Key issues include U.S. trade policy and tourism recovery.

Key Highlights 📊

• Overall Expansion: The Thai economy grew compared to December, supported by stronger domestic and external demand.
• External Demand:
  • Merchandise exports (excluding gold) increased, especially electronics.
  • Exports of gems, jewelry, and petroleum products rose temporarily due to firm-specific factors.
  • Tourism improved with higher foreign arrivals and receipts.
• Domestic Demand:
  • Private consumption and investment strengthened.
  • Vehicle sales surged, driven by accelerated purchases ahead of the EV 3.0 scheme deadline and extended registration.
• Government Spending: Expanded but slowed, mainly due to reduced capital expenditure after earlier front-loading.
• Supply-Side Conditions:
  • Services slightly contracted, mainly from a decline in construction activity.
  • Tourism and trade-related services continued to expand.
  • Manufacturing production remained broadly stable.
• Inflation & Stability
• Headline Inflation: Turned more negative, driven by lower raw food and energy prices.
• Core Inflation: Stayed positive and stable, reflecting higher vehicle prices (excise tax adjustments) but offset by promotional discounts in personal care.
• Current Account: Recorded a surplus, supported by net services, income, and transfers, despite a trade deficit from higher imports.

Thailand’s economy in January saw growth fueled by increased exports, particularly in electronics, gems, and jewelry, as well as improved tourism and domestic demand. Vehicle sales surged due to accelerated purchases before the EV 3.0 scheme’s expiration. However, government spending slowed due to previous capital expenditure front-loading, causing a decline in construction and a slight moderation in services, while manufacturing production remained stable.

Source : https://www.bot.or.th/en/news-and-media/news/news-20260227.html

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