Thai economy slows in March but central bank sees improvement ahead

BANGKOK, April 28 (Reuters) – Thailand’s economy slowed down in March compared with the previous month, as exports declined but the service sector continued to improve from higher foreign tourist numbers, the central bank said on Friday.

Economic activity is expected to have improved in April and exports should gradually pick up, the Bank of Thailand (BOT) said in a statement.

“We expect the global economy and our trading partners’ economies to gradually improve in the second half, and exports will do so,” Assistant Governor Chayawadee Chai-Anant told a news conference.

Exports, a key driver of growth, may have bottomed out, she added. March’s exports dropped 5.8% year-on-year.

In the first quarter, the economy continued to improve from the previous period, mainly due to the tourism sector which bolstered services and private consumption, the BOT said.

Southeast Asia’s second-largest economy in the January-March period is expected to have performed better, both quarter-on-quarter and year-on-year, Chayawadee said.

The second quarter should see a steady recovery, particularly tourism, which may give some upside, she added.

Official first-quarter gross domestic product (GDP) data is due to be released on May 15 by the state planning agency.

Last month, the BOT trimmed its projections for economic growth to 3.6% this year and 3.8% next year, down from earlier forecasts of 3.7% and 3.9%, respectively.

But it forecast higher foreign tourist arrivals at 28 million this year and 35 million next year. Pre-pandemic 2019 saw nearly 40 million foreign visitors.

Thailand recorded a current account surplus of $4.8 billion in March, the highest in 37 months, after a surplus of $1.3 billion in the previous month.

Reporting by Orathai Sriring and Kitiphong Thaichareon; Editing by Martin Petty

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