Thailand Monthly Economic Monitor April 2025

     Thailand’s economic activity showed mixed signals in February. Steady consumption and strong exports were offset by a sharp contraction in private investment due to rising uncertainty. Goods exports remained a key driver, bolstered by robust shipments to the US and China, in part due to frontloading amid rising global trade uncertainties. However, mounting risks from global trade uncertainty are a concern. The tourism recovery softened, influenced by seasonal factors and a decline in Chinese arrivals. Additionally, the recent earthquake may negatively impact future tourist numbers. Inflation continued to decline in March, prompting further monetary easing. Financial markets weakened as risk-off sentiment and policy uncertainty eroded investor confidence, resulting in Thai baht depreciation despite a strong current account surplus.