Thailand’s Economy is on Track for Recovery

(CTN News) – According to the Fiscal Policy Office, Thailand’s economic figures in January showed signs of recovery, with a rebound evident in the tourism, consumption, exports, as well as private investments, though private investments have slowed down in recent months.

In an interview with the Financial Times on Wednesday, Pornchai Theeravet, the director-general of the FPO, said that several economic statistics, especially exports that have expanded for six consecutive months, indicate that the country is improving.

Thailand showed signs of economic stability in January, which was reflected in the headline inflation rate of 1.11%, when compared to a core inflation rate of 0.52%, reflecting the signs of economic stability.

In his remarks, the minister noted that the ratio of public debt to GDP at the end of December was 61.3%, which is still within the range allowed by the Financial Discipline Act.

Thailand’s high foreign reserves are another indicator of its strength (US$221.6 billion, 7.99 trillion baht).

According to Pornchai, private consumption increased from the previous month, reflected in car sales. Sales in January were up 2.4% from the same month last year, and 9.4% from the previous month.

The collection of VAT (value-added tax) rose 1.1% from the previous month, but dropped 2.7% from last year. Farmers’ average incomes also rose by 0.6% compared to January last year.

As Pornchai pointed out, the consumer confidence index rose to 62.9 points in January from 62 points in December. According to him, this index has been rising for six consecutive months and is now at its highest level in 47 months.

As a result, although private investment has slowed down by 26.5% compared with January last year, it has risen by 2.1% compared with the previous month.

In his report, Pornchai noted that Thailand’s exports have been growing for six consecutive months, with the value of Thailand’s exports coming in at $22.65 billion in January, which represents a 10% increase on last year’s $22.16 billion.