Public spending expanded well and remained an important growth driver.
The value of merchandise exports improved in many categories, which helped compensate for the initial effects on tourism after the government’s restriction of zero-dollar tour operators.
Private investment increased in certain sectors as reflected by greater import of capital goods by export-oriented manufacturing sectors. The central bank’s private investment index increased 0.8 per cent in September from August, during which it increased by 0.5 per cent.
Private consumption expanded at a slower pace relative to earlier periods because of lower spending on non-durable goods. The BOT’s private consumption index for September was up 0.1 per cent from the previous month, during which it fell 0.2 per cent.
On the stability front, the headline inflation rate increased on higher domestic fuel prices. The unemployment rate remained low. The current account posted a surplus as the trade surplus – improved exports and continuing low import level – compensated for the deficit in the service, income and transfers accounts.
Government revenue collection expanded from the same period last year mainly from taxes, partly reflecting an improvement in overall economic activities. However, non-tax revenue contracted from a high level in the same period last year during which the government expedited a collection of revenue from some state-owned enterprises.
The value of merchandise exports expanded from last year for the second consecutive month, up by 3.5 per cent year on year, or 3.9 per cent when excluding gold. The expansion was observed in many categories.
The export of electrical appliances was driven by capacity expansion to meet rising demand from various markets, especially CLMV (Cambodia, Laos, Myanmar and Vietnam), Europe and the US. In addition, a smaller contraction in the value of some exports was due to recovering oil prices. Indeed, the gradual pick-up in exports was in line with an improvement in the Manufacturing Production Index.
Despite continuing public investment and private investment crowding in, the real-estate market decelerated as demand softened after government stimulus measures ended.
The value of merchandise imports grew by 1.7 per cent from the same period last year. Excluding gold, imports grew by 0.3 per cent on the back of growth in various categories. Imports of capital goods expanded in transformers and power generators, consistent with steady investment in alternative energy.
Moreover, the import of machines for electronics and electrical-appliance industries displayed a better outlook. Imported raw materials and intermediate goods also expanded for such industries.