Press Release on the Economic and Monetary Conditions for August 2025
BOT Press Release No. 35/2025 | 30 Sep 2025
- The Thai economy softened from the previous month, due to weaker agricultural and industrial output, which weighed on trade and freight transport services. In contrast, the tourism sector improved, supported by both domestic and foreign tourism. Meanwhile, merchandise exports, private consumption and investment remained stable. Manufacturing production continued to decline due to sluggish demand in some sectors, high inventory levels in certain products, and temporary production halts.
- Merchandise exports to the U.S. declined for the first time since the implementation of U.S. import tariffs as well as electronic product exports softened slightly, after several months of strong growth.
- Employment conditions remained broadly stable, however, the construction sector continued to deteriorate. Meanwhile, the ratio of total and new unemployment claimants to total insured people declined.
- Key issues to monitor include: 1) the recovery of manufacturing production 2) the impact of U.S. trade policies, 3) the performance of the tourism sector, and 4) government stimulus measures
The Thai economy softened in August, due to declines in agricultural output, industrial production, and related services such as trade and freight transport. Manufacturing fell, particularly in automobiles and food and beverages, reflecting weak demand, high inventories, and temporary factory closures for relocation and maintenance. Meanwhile, private consumption, investment and merchandise exports remained stable, though electronic exports eased following strong growth in prior months. However, tourism improved, supported by higher revenue from both domestic and foreign tourists. Government spending contracted slightly due to lower capital expenditures by the central government and state-owned enterprises.
On the economic stability front, headline inflation turned more negative, primarily due to falling fresh food prices—particularly vegetables and meat—driven by favorable weather conditions. Meanwhile, energy inflation was less negative, as retail oil prices stabilized. Core inflation remained steady. The current account recorded a slight deficit, mainly attributed to a wider deficit in the services, income, and transfers account, driven by increased profit repatriation abroad during the dividend payout period, and a narrower trade surplus. Employment conditions remained stable.
