Thai economy improved in September driven by exports and private investment

The Thai economy showed positive growth in September compared to the previous month, with key drivers being exports and private investment. Merchandise exports, excluding gold, surged, particularly in the electronics sector, benefiting from global technology and AI trends. Private investment also saw a significant boost, linked to increased imports of data processing equipment for data centers, which in turn boosted manufacturing production.

The tourism industry experienced a rebound in foreign tourism receipts, buoyed by longer average stays from visitors, despite a decrease in tourist arrivals, especially from short-haul destinations affected by the end of the summer break. Notably, private consumption slowed, mainly due to the persisting high cost of living. Overall, the Thai economy expanded in the third quarter, driven by robust growth in merchandise exports and private investment, although tourism-related activities and headline inflation saw a decline.

Monitor key factors such as the longevity of the global technology and AI cycle, geopolitical conflicts, tourism sector recovery, and the impact of flooding and El Niño.