Thailand posted a record-high current account deficit of $7.6 billion in April, with economic growth slowing from the previous month from the impacts of the Middle East war and expected to get weaker, the Bank of Thailand said on Friday.
The record-high deficit was not a worry yet and should be temporary, Assistant Governor Chayawadee Chai-anant said, adding the Iran war was expected to end in the middle of the year.
The baht will remain highly volatile, reflecting uncertainty, Ms Chayawadee told a briefing.
In April, tourist arrivals and spending weakened and private consumption fell as a result of lower spending on consumer goods and fuel, with higher energy prices raising the cost of living, the central bank said in a statement.
Headline inflation turned positive, driven by higher domestic petrol and diesel prices. Core inflation rose as energy costs were passed through into food and public transport prices, it said.
Merchandise exports excluding gold increased, supported by strong growth in technology products and auto exports.
Manufacturing production remained broadly stable and conflict-related supply disruptions remained limited, it said.
Key issues to monitor include Middle East conflict developments, potential U.S. trade policy changes, El Nino conditions and government economic stimulus measures, the central bank said.
Thailand's first-quarter GDP growth beat forecasts, but the state planning National Economic and Social Development Council last week maintained its 2026 outlook at 1.5% to 2.5%.
Earlier this month, BoT Governor Vitai Ratanakorn said he expected growth of 2.1% this year, up from 1.5% projected at the last policy meeting in April, when the key interest rate was held steady at 1.00%.
This month, the cabinet approved new borrowing of 200 billion baht ($6.15 billion) to finance a consumer subsidy scheme, part of a wider 400 billion baht loan decree to mitigate the impact of the war.
