Thailand’s current-account deficits in April-May reflect surging imports of energy and capital goods, weakening external buffers despite resilient exports.
Thailand’s current-account deficits widened in April-May due to strong imports of energy, raw materials, and capital goods, reducing the domestic value-added from resilient exports. Headline inflation rose to 2.8–2.9% year-over-year during the period, with producer price pressures remaining elevated.
Official reserves remain high, and external debt metrics are manageable, but the current account no longer provides the same support as earlier in the year. The deficits are not yet a balance-of-payments concern, though near-term FX performance will hinge on oil prices, Fed policy expectations, and further trade data.
The baht’s structural buffers continue to offer support, but its sensitivity to external factors has increased. Imports of intermediate and capital goods suggest ongoing industrial activity, though this has diluted the positive impact of export growth.