BANGKOK, Thailand – Thailand’s economy slowed in July 2025 compared with the previous month, according to Chayawadee Chai-anan, Assistant Governor and spokesperson of the Bank of Thailand. Service sector activity declined due to weaker domestic and international tourism, reflecting lower tourism revenues.
Industrial production fell following refinery maintenance shutdowns and temporary pauses in car manufacturing for process adjustments. Excluding these factors, industrial output improved, consistent with rising exports. Private investment decreased, mainly in machinery and equipment, while private consumption remained stable, though consumer confidence is under pressure. Government spending expanded, supported by central government expenses and state enterprise investment.
Overall economic stability saw headline inflation deepen into negative territory due to falling fresh food prices, including fruits and meat, and lower domestic fuel prices in line with global oil trends. Core inflation slowed, reflecting high-base effects from processed foods and lower prices for personal goods amid promotions. The current account surplus narrowed slightly due to a decrease in the trade balance. Employment remained stable, though the share of unemployment claims among insured workers increased.
Key factors to watch include U.S. tax measures, tourism developments, and the Thai–Cambodian border situation and its impact on cross-border trade and tourism. (TNA)
