Thai economy to improve further in H2 on consumption, tourism – central bank

BANGKOK (Reuters) – Thailand’s economy improved in June and the momentum should continue into the second half thanks to increased tourism and domestic consumption as pandemic curbs ease, a central bank official said on Wednesday.

While the revitalised tourism sector is a good boost to the economy, Bank of Thailand (BOT) Senior director Chayawadee Chai-Anant said officials are monitoring inflation, COVID-19 outbreaks and global economic issues.

Southeast Asia’s second-largest economy improved in the second quarter from the previous quarter, with annual growth expected at 3% or slightly higher, she said.

Official second-quarter gross domestic product will be released by the state planning agency on Aug. 15. In the first quarter, annual GDP growth was 2.2%.

The Thai baht and regional currencies are still on a weakening trend due to dollar strength, she said.

But the baht depreciated more than its peers in July on concerns that China’s economy might recover slower than expected and that would affect Thailand, she said.

“Fund flows continue to move in line with investors’ views on the economy and the financial sector… but I haven’t seen anything to worry about yet,” Chayawadee said.

In June, the economy improved from the previous month. Exports rose 11.1% from a year while imports jumped 24.3%, resulting in a trade surplus in dollar terms of $2.1 billion in the month.

Meanwhile, the country recorded a current account deficit of $1.9 billion in June, down from a deficit of $3.7 billion in the previous month.

(Reporting by Kitiphong Thaichareon, Orathai Sriring and Satawasin Staporncharnchai; Editing by Martin Petty and Kanupriya Kapoor)