Thailand's economic growth softens in April on Mideast tensions

Thailand’s economy softened in April as tourism receipts and private consumption declined amid rising energy expenses tied to Middle East conflict, the Bank of Thailand reported. Foreign tourist arrivals fell 3.9% month-on-month, particularly from short-haul markets, while tourism revenue dropped due to reduced flight services from higher fuel costs. Private consumption weakened as households cut spending on consumer goods and fuel after earlier purchases, alongside adjustments to work and travel patterns caused by elevated energy prices. Private investment also declined, driven by lower machinery and equipment spending, though construction investment rose slightly due to residential and non-residential demand. Exports, a key growth driver, expanded 1.3% month-on-month, supported by technology products and automotive shipments, though exports to the Middle East remained contracted. The central bank expects further economic slowdown due to ongoing Middle East tensions, which will weigh on tourism and private spending. However, exports of technology-related products and construction investment are projected to grow, while government stimulus measures are expected to provide support. The Bank of Thailand’s assistant governor, Chayawadee Chai-anant, noted these trends in a news conference, emphasizing the need for continued policy intervention to stabilize growth.