Business

Thailand’s inflation rate has fallen for the first time in 25 months, due to lower energy and food prices.

Thailand’s inflation rate decreased for the first time in 25 months, primarily due to lower energy and food prices. The consumer price index fell by 0.31% in October compared to the previous year, below expectations. Despite the decrease in inflation, the Ministry still expects headline inflation to range between 1.0% to 1.7% for the year.

The consumer price index (CPI) decreased by 0.31% in October compared to the previous year, but the core CPI, which excludes volatile items, increased by 0.66%.

The core CPI, which excludes volatile items, increased by 0.66% in October.

Headline inflation has been below the central bank’s target for six consecutive months. The ministry predicts headline inflation to be between 1.0% and 1.7% for this year. The Bank of Thailand recently raised interest rates, expecting growth and …

The Thai stock market has hit a 10-year low, prompting investment advisors to advise caution when adjusting portfolios.

Key TakeawaysThe Thai stock market has experienced a significant decline, reaching its lowest point in 10 years, partly due to concerns over international situations and bond yields.The increase in US bond yields, coupled with the Thai government’s digital wallet policy, has led to an oversupply of bonds and impacted the Thai stock market.Investors should remain cautious in the coming year, as the potential economic decline in the US and Europe may lead to an economic recession, while the return and recovery of China’s economy pose additional risks.

The market dropped below 1,400 points, close to the level recorded in 2013. The price-to-earnings ratio is considered moderate and tradable. The decline is attributed to concerns over the international situation and bond yields.

The Thai government’s digital wallet policy and increased borrowing have…

The Ministry of Finance in Thailand has revised its economic growth forecast for 2023 to 2.7%, down from 3.5%, due to weaker exports and lower government consumption.

Key TakeawaysThe Ministry of Finance has lowered Thailand's economic growth forecast for 2023 to 2.7% due to weaker exports and lower government consumption.The Thai economy continues to depend on tourism and domestic consumption as exports remain weak.The ministry predicts a 1.8% contraction in exports this year, but expects a rebound with a 4.4% growth in exports in 2024.

However, they anticipate a higher growth rate of 3.2% for 2024, which does not yet include the impact of the government's planned 'digital wallet' handout scheme.

The Thai economy currently relies on tourism and domestic consumption as exports remain weak. Exports are projected to contract by 1.8% this year but are expected to rise by 4.4% in 2024.

The ministry also lowered the expected number of foreign tourists for this y…

According to SCB EIC’s analysis, the current Israeli-Palestinian conflict is not expected to have a significant impact on the Thai economy in terms of tourism and merchandise exports.

Key Takeaways The global economy is experiencing a slowdown, led by a contraction in the service sector and a slower expansion in the manufacturing sector, with the US economy showing clear signs of slowing down in the fourth quarter. The global inflation rate is expected to accelerate in the coming years, with central banks in the US, Europe, and the UK keeping interest rates high until mid-2024 before gradually reducing them in the latter half of the year. Thailand’s economy is expected to recover through private consumption and the service sector, driven by an increase in international tourists from ASEAN, East Asia, and Europe, as well as a resurgence in Thai domestic tourism, while exports are also expected to rebound in the fourth quarter.

The global economy is currently experi…

Chinese tourists are slow to return to Southeast Asian countries, despite efforts to attract them with visa-free travel.

Key Points Despite efforts to attract Chinese tourists, Southeast Asian nations are still experiencing a slow return of Chinese visitors, impacting their tourism-dependent economies. Chinese tourists who do visit are spending less and haggling for bigger discounts, affecting the earnings of hospitality businesses in the region. Companies in Southeast Asia are reassessing their expansion plans due to the lack of Chinese travelers, with some turning to India as an alternative market.

This is causing a decline in tourism-dependent economies and forcing businesses to reconsider their expansion plans. The number of Chinese visitors to countries like Thailand, Cambodia, and Vietnam has significantly decreased since before COVID-19.

Chinese tourists who do visit are more budget-conscious and are haggling for bigger discounts. The slow recovery i…

Chinese real estate investors who were once the top buyers of high-end condos and apartments in Thailand are now cutting back due to an economic downturn and real estate crisis in China.

Key TakeawaysChinese real estate investors, who were previously major players in Thailand’s luxury condo and apartment sector, are now reducing their investments due to economic downturn and real estate crisis in China.Traditional English-speaking countries, like Australia, Canada, the U.K., and the U.S., have become more attractive to Chinese buyers for real estate investments, surpassing Thailand in popularity.Vietnam, unlike Thailand, is less reliant on Chinese investors and has seen steady investment from Chinese buyers in apartments, particularly in major cities like Hanoi and Ho Chi Minh.

Thailand, which was previously the number one destination for Chinese buyers, has now dropped to fifth place, with Australia, Canada, the UK, and the US taking the top spots. Chinese buyers are …

The World Bank has revised its growth forecast for developing East Asia and the Pacific, citing a sluggish China, weak global demand, high interest rates, and dampened trade.

Key TakeawaysThe World Bank has revised down its growth forecast for developing East Asia and the Pacific due to the sluggishness of China, weak global demand, high interest rates, and dampened trade.The region is facing a risk to investment growth due to the increase in government and corporate debt levels, particularly in China, Thailand, and Vietnam.Consumption growth may be negatively impacted in China, Malaysia, and Thailand due to high household debt, as more income is utilized for debt repayment resulting in reduced spending.

The World Bank now projects a 5% growth for the region in 2023, slightly lower than its previous forecast. Additionally, it has lowered its growth estimation for China in 2024, due to concerns regarding debt levels and weakness in the property sector.

The economic…

The Monetary Policy Committee in Thailand has unanimously voted to raise the policy rate by 0.25 percentage points, bringing it to 2.50 percent.

Key TakeawaysThe Monetary Policy Committee (MPC) of the Bank of Thailand has unanimously decided to raise the policy rate by 0.25 percentage point to 2.50 percent, aiming to sustainably control inflation and ensure long-term macro-financial stability.The Thai economy is expected to recover at a slower pace in 2023 due to soft external demand but is projected to pick up in 2024. The Committee has projected a growth rate of 2.8% and 4.4% for the years 2023 and 2024 respectivelyInflation is projected to increase next year, in line with the economic recovery and El Niño-related supply pressure, while the Committee remains attentive to upside risks stemming from government economic policies and potential food price increases.

The Committee has projected a growth rate of 2.8% and 4.4% for the years 2023 and 2024 respectively. The g…

According to the Digital Economy Promotion Agency (DEPA), Thailand’s digital economy has grown by 14% in 2022, reaching a market value of 2.6 trillion baht.

Key TakeawaysThailand’s digital economy grew by 14% in 2022, reaching a market value of 2.6 trillion baht, driven by changes in consumer behavior and technological advancements.The digital services sector experienced the highest growth rate at 21%, with FinTech, Health Tech, and retail contributing significantly to its market value of nearly 300 billion baht.The software and software services industry also saw significant expansion at 19%, projected to reach a value of around 270 billion baht in the coming years, highlighting the country’s comprehensive shift towards digitization.

The growth is driven by changes in consumer behavior and technological advancements. The digital services sector saw the highest growth at 21%, with FinTech, Health Tech, and retail contributing to a market value of nearly 300 billion ba…