The Bank of Thailand stated that, in August 2020, the Thai economy slightly improved, held up by lighter contractions in merchandise exports value, manufacturing production, and private investment indicators.
According to the release on economic and monetary conditions for August 2020, issued by the Bank of Thailand on 30 September, the value of merchandise exports contracted by 8.2 percent from the same period last year.
Manufacturing production had a softer contraction in almost all categories, aligning with the gradual recovery in the merchandise exports and domestic spending. Private investment indicators marked lighter contraction as compared to the previous month, mainly from investment in machinery and equipment.
Public spending, excluding transfers, had greater expansion. However, private consumption indicators contracted further after positive effects of special extended holiday in the previous month terminated. They were still on a recovery path in line with factors supporting consumer purchasing power.
Meanwhile, the tourism sector persistently experienced severe contraction. Thailand received no foreign tourist arrivals for the fifth consecutive months as international travel restrictions remained in place.
On the economic stability front, headline inflation recorded a softer negative on the back of the increase in fresh food and energy prices.
Labor market improved but remained vulnerable. The current account was a surplus largely contributed by gold exports. The capital and financial accounts posted a deficit owing to the liability position.