Press Release on the Economic and Monetary Conditions for August 2026
BOT Press Release No. 37/2026 | 30 Sep 2026
- The Thai economy in August remained broadly stable from the previous month
o External demand remained broadly stable, with merchandise exports remaining at a high level, supported by continued momentum from the global technology and artificial intelligence (AI) cycle. Tourism receipts remained broadly stable, as the average length of stay of foreign tourists – particularly long-haul visitors – shortened towards more normal levels, despite an increase in the number of foreign tourist arrivals.
o Domestic demand improved, driven primarily by higher private investment, particularly in machinery and equipment, supported by the global technology cycle and investment in data centers. Private consumption also increased slightly.
o Overall supply-side activity softened, reflecting decreases in both manufacturing production and service-sector activity. - Headline inflation increased, driven by higher fresh food prices amid adverse weather conditions and rising production costs, as well as higher energy prices following an increase in global crude oil prices. Core inflation also increased, as businesses gradually pass-through higher costs to consumer prices.
- Key issues to monitor: (1) the continuity of the global technology and artificial intelligence cycle, (2) developments in geopolitical conflicts and international trade protectionist policies, (3) the impact of government measures, (4) the impact of flooding and El Niño (5) the recovery of the tourism sector
Details of the economic conditions are as follows:
The Thai economy in August remained broadly stable from the previous month. Merchandise exports excluding gold remained at a high level, supported by the continued momentum of the global technology and artificial intelligence (AI) cycle. However, exports of technology-related products moderated somewhat after strong growth in the preceding period, while exports of other products increased. The number of foreign tourist arrivals increased, driven mainly by Chinese tourists, while tourism receipts remained broadly stable from the previous month, as the average length of stay shortened as long-haul flights recover toward levels seen before the Middle East conflict. Domestic demand improved, driven by private investment, particularly in machinery and equipment. Private consumption also increased slightly, supported by higher spending on services, particularly hotels and restaurants, consistent with the increase in foreign tourist arrivals. Spending on durable goods also continued to increase. On the supply side however, overall activity softened, reflecting lower manufacturing production and service-sector activity. Meanwhile, government spending continued to expand, supported by higher disbursements from both the central government and state-owned enterprises.
On the economic stability front, headline inflation increased from the previous month, driven by higher fresh food prices from lowered agricultural output from adverse weather conditions as well as rising production costs. Domestic retail oil prices also increased in line with rising global crude oil prices as tensions in the Middle East intensified. Core inflation also increased, as businesses gradually passed through higher costs to consumer prices, particularly in prepared food prices. The current account recorded a surplus, mainly reflecting a trade surplus. The labor market remained broadly stable overall, although the number of unemployment benefit claimants has shown a continued upward trend and warrants monitoring.
