Thai economic activities softened in February, tourism sector slowed due to lower Chinese tourist arrivals, but increased from other nationalities. Automotive production remained low, construction slowed, electronic products increased. Labor market improved but unemployment claims rising. U.S. trade policies pose future risks.
Summary
- The Thai economic activities softened in February, both in the service and manufacturing sectors.
- The tourism sector slowed down mainly due to lower Chinese tourist arrivals as many had traveled in the previous month for the Chinese New Year festival, together with safety concerns being a suppressive factor, while the number of tourists from other nationalities increased.
- Automotive production slightly improved but remained at a low level, while the construction sector continued to slow down.
- Production and exports of electronic products increased in line with the recovery of the electronics cycle, but future risks from U.S. trade policies warranted a close monitoring.
- The overall labor market improved, but the rising ratio of unemployment claims to total insured persons warranted a close monitoring.
The economic activities in Thailand showed a slowdown in February compared to the previous month, particularly within the tourism-related service sector, where there was a decline in both the number of foreign tourists and the revenue generated. Manufacturing production also experienced a downturn, especially in the chemical and petroleum industries, alongside a deceleration in private investment following a robust growth phase.
On a positive note, exports rose across various categories, particularly in the automotive, electronics, and precious metals sectors. Furthermore, private consumption exhibited improvements, and government spending continued to grow due to both current and capital expenses by the central government.
Source : Press Release on the Economic and Monetary Conditions for February 2025
