In May, Thailand's economy experienced a slowdown driven by declines in tourism revenue and manufacturing output, overshadowing export growth.
Decline in Tourism and Manufacturing
According to the Bank of Thailand, tourism revenue and the number of international visitors—particularly long-haul travelers—dropped during the month. Manufacturing output declined due to prior inventory restocking and a temporary refinery shutdown for maintenance.
Exports as a Positive Factor
While the tourism sector faced declines, exports provided a bright spot for the economy, posting strong growth attributed to increased global demand for electronics and a shipment rush ahead of looming tariff deadlines.
Central Bank Measures Amid Uncertainty
In response to the economic slowdown, the central bank left its key interest rate unchanged at 1.75%. It cited the importance of supporting the economy amid global trade uncertainties and domestic political turmoil, stating that it is prepared to further reduce rates if necessary.
Amid the slowing economic growth and uncertainties related to international trade and domestic politics, the central bank is poised to take further measures to support Thailand's economy.
