Press Release on the Economic and Monetary Conditions for April 2026
BOT Press Release No. 21/2026 | 29 May 2026
- The Thai economy in April softened from the previous month, particularly in tourism and private consumption.
o Tourism receipts declined in line with a decrease in the number of foreign tourist arrivals, in large part due to the Middle East conflict. Private consumption also declined, driven by lower spending on non‑durable goods, including consumer goods and fuel, amid higher energy costs that raised the cost of living. Spending on hotel and restaurant services also declined, resulting in weaker service sector activity.
o However, merchandise exports excluding gold increased, supported by continued strong growth in technology products and automotive exports, in line with trading partners’ demand. Meanwhile, manufacturing production remained broadly stable. Supply disruptions from upstream raw material shortages related to the Middle East conflict remain limited. - Headline inflation turned positive, driven mainly by higher energy prices, particularly domestic gasoline and diesel fuel prices. Core inflation increased from the pass‑through of higher energy costs to prepared food and public transport fares.
- Key issues to monitor: 1) Middle East conflict developments 2) the ability of businesses and households to adapt, 3) government economic stimulus measures, 4) potential changes in U.S. trade policy, and 5) developments in El Niño conditions
Details of the economic conditions are as follows:
Thailand’s economy in April softened from the previous month, primarily due to the impact of the Middle East conflict. Foreign tourist arrivals and tourism receipts continued to decline, particularly among short‑haul markets, partly reflecting reduced flight services by several airlines amid higher fuel costs. Meanwhile, tourist arrivals from the Middle East and Europe remained at low levels. Private consumption also declined, driven by lower spending on consumer goods and fuel following earlier front‑loaded purchases, as well as adjustments in working and travel patterns amid significantly higher energy prices. These developments weighed on service sector activity, including trade, hotels, and restaurants. Private investment also decreased after accelerating in the previous month. However, merchandise exports excluding gold increased across several categories, particularly technology products and automotive exports, although exports to the Middle East remained contracted. Manufacturing production remained broadly stable, as higher production in the automotive, rubber, and plastic industries offset a decline in sugar production. Government expenditure expanded, supported by increases in both current and capital expenditures by the central government.
On the stability front, headline inflation increased significantly from the previous month, driven mainly by the energy component following higher global crude oil prices amid the Middle East conflict. Raw food prices also increased in line with lower agricultural output. Core inflation rose due to the pass‑through of higher energy costs to prepared food prices and public transport fares. The current account registered a large deficit, mainly reflecting a trade deficit following accelerated import values. Overall labor market conditions improved.
