Press Release on the Economic and Monetary Conditions for April 2025
BOT Press Release No. 19/2025 | 30 May 2025
- The Thai economy improved from the previous month, following increased activities in the manufacturing production, service sector, as well as private investment.
- Manufacturing production improved across several categories, particularly in passenger car, in line with improvement in passenger car sales. Production in some categories also increased due to inventory replenishment following an export surge in the preceding period.
- The number of foreign tourists slightly increased after a significant slowdown in the preceding period but continued to display negative growth compared to the same period last year.
- The adverse impact from the U.S. trade policy has not yet materialized. Private investment continued to expand. Although exports to the U.S. slowed slightly, they remained at a high level. Additionally, imports of raw materials and components picked up, suggesting that exports to the U.S. may accelerate in the near term before new tariffs take effect.
- Key issues to monitor: 1) trade policies of major economies, 2) developments in the tourism sector, 3) adaptation of the manufacturing sector amid structural challenges and increased competition, and 4) fiscal support and its economic impact
The Thai economy improved from the previous month, driven by the manufacturing sector and related services such as trade and transport. Part of the improved production was due to inventory replenishment after a sharp export increase in the preceding period. Private investment increased, mainly in machinery and equipment, while government spending continued to expand. The tourism sector slightly improved but remained contracted compared to the same period last year. Merchandise exports and private consumption, however, declined from the previous month.
On the economic stability front, headline inflation was slightly negative, mainly due to a drop in energy inflation. This was driven by falling retail gasoline prices, in line with the global oil prices, and government measures to reduce energy prices. However, core inflation increased, following higher prices of prepared food and non-alcoholic beverages. The current account registered a deficit mainly due to trade deficit. Meanwhile, the labor market improved slightly from the previous month.
