Private consumption and investment expanded in November but exports increased less than in October, leading to a current account deficit, the Bank of Thailand said on Thursday.
The country recorded a current account deficit of $1.2 billion in November, after a surplus of $700 million the previous month, the central bank said in a statement posted on its website.
The dollar value of exports, a key driver of growth, rose 3.9% yer-on-year in November from a year earlier, after a 7% increase in October, it said.
Revenue generated by foreign tourist arrivals dropped in November, possibly due to a shorter average length of stay by foreign tourists. Manufacturing also decreased, the central bank said.
However, private consumption increased by 0.8% from October and private investment rose by 1.8%, the BoT said, noting domestic demand was expected to continue underpinning economic activity in December.
Public spending contracted from the same period last year, mainly because disbursement of capital expenditure was affected by the delay of the 2024 fiscal budget. However, investments by state enterprises expanded due to higher disbursement for transport and utility projects, the BoT said.
Headline inflation declined as government subsidies kept fuel and electricity prices in check and global crude oil prices eased.
Southeast Asia’s second-largest economy grew by 1.5% in the July-September quarter from a year earlier, the slowest pace this year and less than expected, on weak exports and government spending.
In a separate report on Thursday, the central bank said the ratio of household debt to gross domestic product rose slightly to 90.9% at the end of the third quarter from a revised 90.8% in the previous quarter.
The amount of debt increased to 16.2 trillion baht at the end of September from 16.1 trillion baht at the end of June.
The BoT has said that any ratio of debt to GDP above 80% is cause for concern, and both it and the government have been working on ways to reduce it.
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