Thailand’s economy improves in September as AI demand lifts exports

Thailand recorded a monthly economic improvement in September as global demand linked to artificial intelligence supported electronics shipments and data-centre investment, the Bank of Thailand said on October 30. Tourism and consumer spending, however, weakened.

Seasonally adjusted goods exports, excluding gold, increased 3.7 per cent from August, with telecommunications equipment and computers leading the rise. The bank’s private investment index climbed 21.6 per cent as imports of data-centre equipment increased, also lifting manufacturing output.

Foreign visitor numbers declined 6.3 per cent month-on-month. Pranee Sutthasri, senior director of the central bank’s Macroeconomic Department, attributed the fall to slower short-haul travel after the summer school holidays, flight constraints and higher travel costs following an increase in oil prices.

Despite fewer arrivals, tourism receipts increased 12.5 per cent from August because visitors stayed longer and long-haul travellers accounted for a larger share, Pranee said.

Private consumption fell 2.2 per cent month-on-month, chiefly because of reduced services spending, especially at hotels and restaurants. Pranee said high living costs had made households more cautious. Government spending was down 0.9 per cent year-on-year as disbursements by the central government and state enterprises fell.

The bank described an uneven recovery, with benefits concentrated among AI-related businesses and workers. It expects household consumption to improve gradually, helped by government measures and rising labour incomes.