Thailand Weekly Economic Update

Thailand’s business sentiment improved in June due to the confidence among manufacturing and non-manufacturing sectors rising to 51.0 in June compared to 49.7 in May. On the other hand , the Retail sentiment index for the second quarter is at 47 under 50 for the first time in 15 months as a delayed formation of the government, high cost of living and household debts. The core CPI increased year over year by 1.32%, which was below market estimates of a 1.4% increase.

The Set index is expected to remain range-bound between support at 1495 and resistance at 1510, while discussions for House Speaker Improvement take place between the Move Forward and Pheu Thai Party; additionally, a technical rebound has occurred following oversold levels on the RSI, and the USD/THB is trading within a range with support and resistance levels at 35.20 and 35.80 respectively, as the dollar strengthens due to better-than-expected US GDP figures.

Thailand’s industrial confidence index in May 2023 was down from 95.0 to 92.5 due to the slowdown of exports. The Bank of Thailand expects GDP growth to exceed its forecast of 3.6% in 2023 with the economic policies of the new government driving expansion alongside tourism and consumption growth.

Thailand’s industrial confidence index in May 2023 was down from 95.0 to 92.5 due to the slowdown of exports. The Bank of Thailand expects GDP growth to exceed its forecast of 3.6% in 2023 with the economic policies of the new government driving expansion alongside tourism and consumption growth.

Thailand’s headline inflation in May sharply declined to 0.53% which is the lowest in 21 months due to the sharp reduction in fuel costs. While the Consumer Confidence Index in Thailand was at 55.07, increasing for the 12th consecutive month and the highest in 39 months since March 2020. Moreover, the State banks are increasing their interest rates following the Bank of Thailand’s policy rate hike.

Thailand’s exports in April contracted 7.6% year on year (YoY) due to the slowdown of the global economy. This will create the contract of Thailand’s manufacturing production index (MPI) in April by 8.14% from a year earlier.The policy rate in Thailand rose by 0.25% per year from 1.75% to 2.00% per year, with immediate effect.

Thailand’s unemployment rate improved to 1.05% due to the country’s economic recovery and the expansion of the tourist sector. The policy interest rate in Thailand is likely to be raised by 0.25% to 2% and maintain at 2.00% throughout 2023 if the Thai economy continues its sustained recovery in the latter half of the year, as anticipated.

The Thai stock market on 15 may was down due to the problem about whether a new government could be formed or not. An international provider for liquid logistics, The Ama Marine Public Company Limited, recorded a profit of 80 million baht for the first half of 2013. This is an improvement over the previous year loss of THB 0.48 million, which was caused by a spike in shipping revenue after high freight prices increased cargo transport revenues.

The Thai stock market on 15 may was down due to the problem about whether a new government could be formed or not. An international provider for liquid logistics, The Ama Marine Public Company Limited, recorded a profit of 80 million baht for the first half of 2013. This is an improvement over the previous year loss of THB 0.48 million, which was caused by a spike in shipping revenue after high freight prices increased cargo transport revenues.