Thailand’s September economic indicators

Economic indicators released by the Bank of Thailand put a negative tone on domestic spending, despite improved trade and current account balances in line with the slowdown in imports. Key economic variables for September 2005 are summarised as follows: Exports grew slower, though their growth exceeded imports. In September, exports grew by 23.8 percent, against the growth of 25.5 percent in August. Meanwhile, imports slowed steadily, growing by 19.9 percent against 24.1 percent in the preceding month. As a result, the September trade balance posted a surplus of USD818m, compared to the USD277m deficit of the month prior.

For trends in October, though retail fuel prices have dropped slightly, the average diesel price in October was higher than that of September. This leads analysts to forecast that, overall, the domestic spending of the private sector may continue to be affected by inflation, which is expected to have stayed above 6.0 percent for October.