Thailand's economy improves in October

Thailand's economy improved in October due to tourism, exports and private consumption, which was helped by the government's economic stimulus measures, according to the Bank of Thailand (BoT).

Industrial production increased in line with domestic demand and exports, excluding automobiles, it said.

The current account surplus was $700 million in October, up slightly from September's surplus of $600 million.

The central bank said that private consumption increased 0.8% in October from September and private investment rose 4.5%, adding that government spending also rose sharply.

Tourism, a key economic driver, helped the service sectors. However, structural impediments pressured business and household income in some groups.

The BoT cut its policy interest rate by 25 basis points to 2.25% in a surprise decision at its October 16 review. It also raised its 2024 GDP growth forecast to 2.7% from 2.6%, but trimmed its 2025 growth outlook to 2.9% from 3%.

The economy grew an annual 3% in the third quarter of this year, the fastest pace in two years, but officials and analysts saw increased challenges to maintaining the momentum next year.