The Fiscal Policy Office (FPO) remains concerned that the war in the Middle East and volatility in the baht exchange rate could adversely affect the Thai economy, despite imports of capital goods rising by nearly 44% in February compared with the same period last year, reflecting continued expansion in private sector investment.
According to Vinit Visessuvanapoom, director-general of the FPO, private investment indicators showed signs of stabilising compared with the same period last year.
Investment in the machinery and equipment category was reflected in the preliminary volume of capital goods imports, which in February increased by 43.7% from the same period last year and rose by 0.9% from the previous month after seasonal adjustment. Meanwhile, the number of newly registered commercial vehicles in February declined by 10% year-on-year and decreased by 0.5% from the previous month after seasonal adjustment.
Meanwhile, the number of newly registered commercial vehicles in February declined by 10% year-on-year and decreased by 0.5% from the previous month after seasonal adjustment.
Given the value of merchandise exports, total exports in US dollar terms in February stood at US$29.4 billion, marking the 20th consecutive month of growth and rising 9.9% from the same period last year.
Excluding oil, gold-related products, and military supplies, export value grew by 11% in February, driven by expansion in electronics, electrical appliances, and vehicles, which increased 56.8%, 10.6%, and 7.8%, respectively.
In addition, exports of fresh, chilled, frozen and dried fruits, processed chicken, and pet food grew by 62.3%, 9.4%, and 4.7%, respectively. Meanwhile, exports of sugar, rubber, beverages, and chemicals declined.
When export values were broken down by Thailand's major trading partners, growth was recorded in the US, Asean (only including the five founding member states), the EU (only including the 15 founding member states), and Japan, increasing 40.5%, 17.8%, 17.3%, and 9.7% respectively year-on-year. However, exports to India, Taiwan, and South Korea declined by 31.0%, 14.0%, and 5.1%, respectively.
On the supply side of the Thai economy, particularly in the tourism services sector, growth continued from foreign tourist arrivals. In February, the number of international tourists visiting Thailand totalled 3.26 million, increasing 4.6% year-on-year and rising 2.6% from the previous month after seasonal adjustment.
Domestic tourism also improved, with 23.7 million domestic visitors in February, increasing 3.3% year-on-year and rising 3.3% from the previous month after seasonal adjustment.
Meanwhile, the agricultural sector, as reflected by the Agricultural Production Index, expanded by 5.5% year-on-year and increased 4.1% from the previous month after seasonal adjustment.
