The relaxation of travel restrictions in support of Thailand’s economic recovery has been accompanied by signs of improvement across all sectors, according to the central bank.
The Bank of Thailand (BOT) said the tourism sector performed especially well in April, even as fewer European and Russian citizens visited the kingdom amid the ongoing armed conflict in Ukraine.
The central bank explained that improved tourism sector performance subsequently assisted the service and transport sectors, while also elevating domestic consumption as well as the labor market situation.
Moderate expenditures on services and non-durable products meanwhile led to private consumption indicators expanding by 8.1% year-over-year in April after a seasonal adjustment, up from 0.8% the previous month.
This improvement has been attributed to diminishing anxieties over the pandemic, even as consumer confidence took a hit due to higher living expenses.
The overall labor market also saw improvement in April, with the number of employees registered under Section 33 of the Social Security Act climbing to 11.2 million, up 0.4% from the previous month.
The central bank acknowledged, however, that the labor market remains fragile, adding that it intends to keep it under closer observation.
The headline inflation rate in April was 4.65%, a modest reduction from the previous month owing primarily to lower energy prices, while the core inflation rate remained steady.