Feb trade deficit widened amid gradual improvement of economy: BOT
The economy showed gradual improvement in February with private consumption indicators recovering thanks to stronger economic activity and stimulus measures from the government, the Bank of Thailand (BOT) reported on Wednesday.
The BOT’s Economic and Monetary Conditions report for February said private investment indicators expanded at a higher rate on the back of higher imports of capital goods.
The current account deficit grew to $1.07 billion (Bt33.5 billion) in February after a deficit of $0.7 billion in the previous month, the central bank said.
The value of exported goods, excluding gold, continued to expand at 7 per cent from the previous month.
However, the value of merchandise imports rose sharply by 23.9 per cent from the same period last year after contracting 6.9 per cent in the previous month. The sharp rise was driven by exports of electronic items and petroleum-related products.
Manufacturing production contracted at a smaller rate from improvement in the production of integrated circuits and semiconductors as well as food and beverage, while production growth of automotive and parts rebounded from the low base last year.
However, contraction in the tourism sector remained high due to international travel restrictions.
Public spending continued to grow partly due to the low base from last year, said the central bank.
On economic stability, the BOT said headline inflation became more negative primarily due to government measures aimed at reducing living costs, while the labour market remained vulnerable.
