Bank of Thailand report showed on Monday that Thailand’s exports rose 7.9 percent to US$21,155 million in January, generating a US$596 million trade surplus and a better-than-expected 4Q21 economy.
Thailand’s economy performed better than projected in 4Q21. This makes it a driving factor for the Thai economy in 2022. However, there are still other factors to take into account this year.
Headline inflation surged in lockstep with rising energy and fresh food prices, and the central bank anticipates an acceleration in inflation in the first half of the year, with the Monetary Policy Committee (MPC) likely to revise its projection.
“This year’s inflation outlook is projected to be revised upward, but this is dependent upon the scenario of the Russia-Ukraine conflict. The central bank will need to address both issues (inflation and gross domestic product),” said Chayawadee Chai-Anan, senior director of the economic and policy department.
Overall, Thailand’s economy slowed marginally in January, as private consumption and investment fell amid fears of an omicron outbreak.
Foreign tourists have decreased as a result of the temporary suspension of the Test & Go, a program that allows fully vaccinated travelers to enter the country without going through quarantine. While exports fell slightly after a month-to-month increase.
