Economy more stable in February, BOT reports

The economic momentum was driven by continued growth in the tourism sector and well-disbursed public spending, despite a slight deceleration after the expedited disbursement in the previous period, the central bank said.
Meanwhile, private consumption was relatively stable. Despite a contraction in purchases of durable goods after the increase in the vehicle excise tax became effective, spending on other goods and services expanded, supported by a slight increase in non-farm income.
The value of merchandise exports, excluding gold, contracted after the continued slowdown in the economies of major trading partners such as China and Asean countries, coupled with the contraction in export prices in line with global oil prices. Consequently, manufacturing production and private investment remained at low levels.
On the stability front, headline inflation remained negative on the back of the decline in oil prices. Nonetheless, core inflation increased somewhat because of a rise in the tobacco excise tax.
The unemployment rate remained at a low level. While there was a slight decline in employment in the manufacturing sector, displaced labour was partly absorbed by the buoyant service sector.
The current account registered a large surplus as a result of the high value of gold exports, together with a continued contraction in imports.
On the external front, the current account posted a large surplus of US$7.4 billion owing to a high level of exports, driven mainly by gold, and an increase in tourism revenue. Meanwhile, the value of merchandise imports remained at a low level.
The capital and financial account registered a deficit of $400 million because of Thai direct investment abroad and an increase in trade credits extended by Thai exporters.