Public spending, excluding transfer payment, expanded from the same period last year from expansion in both the current and capital expenditure of the central government. Capital expenditure of state-owned enterprises also expanded mainly from investment in energy related projects.
The value of merchandise exports, excluding gold and after seasonal adjustment, decreased from the previous month in line with the slowdown in trading partners’ demand, especially to China which saw the exports of agro-manufacturing products and metals fell noticeably. In addition, declining export of petroleum products was observed due to a temporary supply side factor related to inventory management, while export of agricultural products was also temporary affected by unfavorable weather conditions. Nonetheless, some exports categories performed well which included electronics, electrical appliances and automotives.
The value of merchandise imports, excluding gold and after seasonal adjustment, improved from the previous month. This was due to higher import of fuel, both crude oil and natural gas, as well as import of consumer goods, especially durable goods. Nevertheless, other raw materials and intermediate goods decreased after accelerating in the preceding month.
On the stability front, headline inflation slightly rose from the previous month mainly due to fresh food inflation, which was driven by higher vegetable and fruit prices. In addition, core inflation increased from both food and non-food items. Meanwhile energy inflation slowed down in tandem with global crude oil prices. Labor market gradually improved in line with the economic development as reflected by increases in number of total contributors in the social security system. The current account registered a lower deficit due to improved net service, income, and transfers balance, while the trade balance registered a larger deficit mainly from higher import of fuel. On exchange rates, the baht against the US dollar appreciated as markets, in August, expected a less tightening monetary policy stance from the US Federal Reserve with a better recovery prospect on tourism sector in Thailand.
Bank of Thailand
30 September 2022
For further information, please contact : Macroeconomic Team 1-2
Tel : +66 (0) 2283 5639, +66 (0) 2283 5647