April sees moderation in economy as manufacturing dips, tourism strong
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The overall economy in April moderated on the back of softening domestic spending, while exports and export-oriented manufacturing recovered slowly in line with the gradual global economic recovery, according to the Bank of Thailand's "Economic and Mone
Manufacturing production was further dampened by temporary factors, the reduction of production by some industries in response to the government’s request for less energy use during April, and raw-material shortages. As a result, overall manufacturing production contracted, but tourism continued to expand robustly.
On the stability front, inflation eased and unemployment was low. The trade and current accounts recorded deficits while the capital account was in surplus from short-term borrowings by financial institutions to manage liquidity in the foreign-exchange swap market and non-resident portfolio inflows.
The Private Investment Index (PII) declined by 1.1 per cent year on year from machinery and equipment investment, which had previously picked up strongly in the post-flood reconstruction period.
With a delay in global economic recovery, some export-oriented businesses also postponed investment. At the same time, construction investment slowed down after a period of acceleration.
