The Thai economy continued to recover in December 2022, with the service sector driving growth thanks to foreign tourist arrivals supporting private consumption. Merchandise exports increased slightly but contracted on a year-on-year basis, with manufacturing production and private investment affected by a slowdown in trading partners’ demand. Public spending remained stable. Headline inflation increased due to higher fresh food and energy prices, while core inflation remained steady. The labor market improved in line with the economic recovery, and the current account became a surplus. In the fourth quarter of 2022, increasing foreign tourist arrivals bolstered services and private consumption growth. The value of merchandise export deteriorated, while the current account became a surplus as deficits in the net service, income, and transfer balance moderated.
