Thailand's Economy Gains from AI Exports in September
Private investment surged 21.6% month-on-month, driven by data-centre equipment imports, the Bank of Thailand reported on 30 October.
Export Strength in Tech
Beyond investment, Thailand's merchandise exports, excluding gold, rose 3.7% in September from the previous month on a seasonally adjusted basis. This growth was largely led by strong shipments of telecommunications equipment and computer components, reinforcing the impact of the AI boom on the nation's trade performance.
Despite these gains, the central bank observed a weakening in both tourism and domestic consumer spending during the same period.
Tourism and Consumption Slowdown
Foreign tourist arrivals saw a 6.3% month-on-month decline, as short-haul travel decreased following the summer school holidays. This slowdown was compounded by flight constraints and increased travel costs, partly due to rising oil prices, according to Pranee Sutthasri, senior director of the Bank of Thailand's Macroeconomic Department.
Private consumption also dropped 2.2% from August, primarily due to reduced spending on services such as hotels and restaurants. High living expenses prompted households to be more cautious with their spending.
Despite the fall in arrivals, tourism receipts paradoxically rose 12.5% month-on-month, as visitors extended their stays and the proportion of long-haul travellers increased, Pranee Sutthasri noted. Government spending contracted 0.9% year-on-year, reflecting lower disbursements from state entities.
The Bank of Thailand highlighted that the recovery remained uneven, with economic gains largely confined to businesses and workers within AI-related industries. Investors should note this divergence: while tech exports drive growth, a broader recovery in domestic demand, supported by government measures, is crucial for sustained economic expansion.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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