According to Director of the BoT’s Domestic Economy Department Methee Supapong, a significant month-on-month growth was seen in the national economy in May this year, thanks to the Government’s economic stimulus measures and liveliness in private consumption and investment. A surplus of 14 billion THB was also reported in the national cash reserve due to higher revenue from the collection of corporate income tax in combination with mounting overseas demands for Thai export products and tour packages. Thai agricultural products were also extremely popular with the export of rice reaching its all-time high.

On the other hand, Mr Methee admitted that the automotive industry continued to face shrinkage for the second consecutive month as a result of the deadly earthquake and tsunami disasters in Japan earlier this year.

As for the overall economic stability, the Director said it was being impacted by price pressure caused by expensive consumer products and soaring demands. The headline inflation has risen to 4.19 percent while the core inflation is now at 2.48 percent.