Thailand economy slightly less downbeat in September

The Bank of Thailand's September economic report reveals domestic demand improved slightly, while external conditions remained weak, as per the central bank's assessment in August. 

"The domestic conditions recovering slightly from the August soft patch, the Bank of Thailand is expected to remain on the sidelines. In its latest policy statement, the BoT affirmed its stance as sufficiently accommodative, especially if the THB remains generally weak. However, if growth slows further, the risks of further accommodation will rise", says Barclays. 

Looking at the details, Thailand's economic recovery remains sluggish, as evident from the September activity data. Visitor arrival growth weakened in September to 8.7% y/y, slowing from previous months - reflecting the full impact of the Bangkok explosions (-21.9% m/m drop in arrivals).