According to the latest Press Release on the Economic and Monetary Conditions for December and the fourth quarter of 2019 Bank of Thailand, the Thai economy slightly improved in December 2019 .
The value of merchandise exports, manufacturing production, private investment indicators, and public spending contracted at a lower rate. However, private consumption indicators expanded at a pace close to the previous month.
Meanwhile, the tourism sector expanded at a slower pace after the low base effect from the tour boat incident in Phuket last year abated.
Overall economic activity in the fourth quarter of 2019 continued to be on the decelerating trend
The continued contraction of merchandise export value affected domestic economic activities more evidently.
Private consumption indicators decelerated relative to the first half of the year, in line with softening non-farm income and consumer confidence despite supports from the government’s economic stimulus measures.
The slowdown in both domestic and external demand led to a higher contraction in manufacturing production and private investment indicators.
Meanwhile, public spending contracted due to the FY2020 budget has yet to be enforced. Only the tourism sector continued to expand well, partly due to the low base effect from the tour boat incident in Phuket last year.
On the stability front, headline inflation declined from the previous quarter on the back of fresh food prices. The seasonally adjusted unemployment rate was unchanged. Meanwhile, the number of employed persons slightly increased. The current account remained surplus. Capital and financial accounts…