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Thai Economy Gradually Improves as the Spread of the COVID-19 Slows Down

The Bank of Thailand stated that, in February 2021, the Thai economy gradually improved as the spread of the COVID-19 subsided.


According to the Bank of Thailand’s release on the Economic and Monetary Conditions for February 2021, issued on 31 March 2021, private consumption indicators recovered in all spending categories thanks to improvement in economic activities and stimulus measures from the Government.


Private investment indicators expanded at a higher rate on the back of higher imports of capital goods. The improvement was in line with business sentiment and the recovery path of exports. Several export categories continued to improve in tandem with the trading partners’ demand.


The value of merchandise imports expanded remarkably by 23.9 percent from the same period in 2020, compared with the contraction rate of 6.9 percent in January 2021.


Public spending, excluding transfers, continued to expand from the same period last year, from both current and capital expenditures. Meanwhile, current expenditure slightly expanded from purchases of goods and services.


The number of foreign tourist arrivals continued to contract sharply from the same period in 2020 as travel restrictions remained, which resulted in a small number of foreign tourist arrivals.


On the stability front, headline inflation rate became more negative following a decline in price level of all major categories, mainly owing to government measures that reduced costs of living by subsidizing electricity and water bills.


Labor market remained vulnerable as reflected by an increase in the ratio of jobless claims to total contributors in the social security system. The current account registered a higher deficit compared to January 2021.


Source: The Government Public Relations Department