Press Release on the Economic and Monetary Conditions for January 2026
BOT Press Release No. 8/2026 | 27 Feb 2026
- The Thai economy in January expanded from the previous month, supported by improvements in both domestic and external demand.
- External demand increased as merchandise exports excluding gold rose, driven by ongoing growth in electronics, alongside higher foreign tourist arrivals and tourism receipts.
- Domestic demand increased, underpinned by higher private consumption and private investment, especially in the vehicle category, partly due to temporary factors. Government spending expanded but at a slower pace, mainly from the slowdown in capital expenditure.
- Supply-side conditions remained stable. Overall services slightly contracted mainly due to a contraction in construction activity after its sharp increase in the previous month, but tourism and trade-related services continued to expand. Meanwhile, manufacturing production remained broadly unchanged.
- Headline inflation became more negative, mainly due to raw food and energy prices. Meanwhile, core inflation remained positive and remained broadly stable compared to the previous month.
- Key issues to monitor: (1) U.S. trade policy and geopolitical uncertainty (2) the recovery of the tourism sector, (3) business liquidity conditions and the adaptability of the manufacturing sector, and (4) the FY2027 budget process and government measures.
Thailand’s economy in January expanded from the previous month, supported by higher merchandise exports excluding gold, particularly electronics, which continued to grow. Exports of gems and jewelry and petroleum products also increased, albeit temporarily, reflecting firm‑specific factors. Tourism also improved, reflected in higher foreign tourist arrivals and tourism receipts. Domestic demand strengthened, with both private consumption and investment rising. Vehicles sales recorded notable growth, driven by accelerated purchases ahead of the expiration of the EV 3.0 scheme, ongoing deliveries, and the extension of the registration deadline to end‑January. As a result, tourism and trade-related activities expanded. However, government spending grew at a slower pace following earlier front-loading of capital expenditures, leading to a decline in construction activity and a slight moderation in overall services. Manufacturing production remained broadly stable compared to the previous month.
On the economic stability front, headline inflation became more negative, driven primarily by lower raw food and energy prices. Core inflation remained positive and broadly stable from the previous month, reflecting higher vehicle prices following excise tax adjustments, but offset by declines in personal care prices from promotional activities. The current account recorded a surplus, supported by net services, income, and transfers, despite a trade deficit from higher import values.
