Thailand: BoT: Economy improves, but still patchy; Apr 18 factory output up 3.99%

  • Thailand’s economy is expected to grow faster than previously projected due to strong exports, but domestic demand was not yet “broad-based” and monetary policy has to remain accommodative, minutes of the central bank’s last policy meeting showed on 29 May 18.
  • Private consumption expanded, but purchasing power had yet to fully extend to all economic sectors, they said.
  • Higher farm income was a result of a lower base of comparison in previous periods, while earnings of low-income households remained fragile, they said.
  • Accommodative monetary policy should also help headline inflation rise to the central bank’s 1-4% target in a sustainable manner.
  • Meanwhile, Thailand’s annual industrial output rose 3.99% y/y in Apr 18 from an upwardly revised 3.17% in Mar 18 boosted by higher production of cars and car engines, sugar, petroleum and plastic pellets, the industry ministry said on 30 May 18.
  • At factories, capacity utilisation fell to 61.58% in Apr 18 from a revised 76.30% in Mar 18.

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