BANGKOK: Thailand’s economy remained sluggish as private consumption continued to fall although tourist arrivals grew further, the monthly report from the Bank of Thailand showed. Thailand’s economy grew 0.7% in 2014 and the Bank of Thailand projected 2015 growth at 3.8% — a downward revision from its previous estimate of 4.0% due to lower China expansion as well as slower-than-expected government budget disbursement.
The private-consumption index dropped 2.6% in February from a year ago, widening from the revised 1.0% on-year drop in January.
The February PCI inched up 0.1% on month, slowing down from the revised 0.4% month-over-month growth in January, as consumers remained cautious about spending.
The private-investment index edged up 0.5% year-over-year but slipped 0.1% on-month, due to a slow domestic and global economic recovery as well as the lack of clarity in the government’s investment projects.
Meanwhile, tourist arrivals surged 22.6% to 2.68 million in February from a year earlier, with the strong growth attributed to the Chinese New Year festival that drew more Chinese and Malaysian tourists to the country.
Headline inflation continued to fall in February on the back of low global oil prices, and Thailand recorded a current-account surplus of $3.5 billion — the fifth consecutive month of surplus, the BOT said.
The central bank said exports contracted 6.0% on year while imports grew 1.6%, leading to a trade surplus of $2.56 billion.
Persistently weak exports have been anticipated by economists, including OCBC, which projects overseas shipments to remain low throughout the first half of the year, partly due to low commodity prices. However, it said it expects exports to be one of the key pillars for economic growth in 2015, alongside consumption and investments.
Thailand’s economy grew 0.7% in 2014 and the Bank of Thailand projected 2015 growth at 3.8% — a downward revision from its previous estimate of 4.0% due to lower China expansion as well as slower-than-expected government budget disbursement.
