The Thai economy in May improved from the previous month as tourism gathered momentum and private consumption increased while exports remained weak, the Bank of Thailand (BoT) said on Friday.
Economic activity was seen rising steadily with tourist arrivals still increasing, the BoT said in a statement. The BoT expects economic growth at 3.6% this year and 3.8% next year, with the tourism sector a key driver.
In May, Thailand recorded a current account deficit of US$2.8 billion, after a revised deficit of $0.6 billion the previous month, the central bank said.
Exports, a key driver of growth, dropped 5.9% year-on-year in May, from a 4.9% year-on-year drop in the previous month.
Southeast Asia's second-largest economy expanded by a more than expected 2.7% in the first quarter from a year earlier as the vital tourism sector gathered strength.
Global financial market volatility and the formation of a new government and its policies would be monitored going forward, the BoT said.
In addition, the central bank reported that the country's household debt to gross domestic product ratio stood at 90.6% in the first quarter of 2023, down from 91.4% in the previous quarter.
The debt ratio is under a new series, a bank official said.