Thailand’s economy picks up in May as tourism, spending rise

BANGKOK  – Thailand’s economy in May improved from the previous month as tourism gathered momentum and private consumption increased while exports remained weak, the central bank said on Friday.

Economic activity was seen rising steadily with tourist arrivals still increasing, the Bank of Thailand (BOT) said in a statement. The BOT expects economic growth at 3.6 percent this year and 3.8 percent next year, with the tourism sector a key driver.

In May, Thailand recorded a current account deficit of $2.8 billion, after a revised deficit of $0.6 billion the previous month, the BOT said on Friday.

Exports, a key driver of growth, dropped 5.9 percent year-on-year in May, from a 4.9- percent year-on-year drop the previous month.

Southeast Asia’s second-largest economy expanded by a more than expected 2.7 percent in the first quarter from a year earlier as the vital tourism sector gathered strength.

Global financial market volatility and the formation of a new government and its policies would be monitored going forward, the BOT said.