BANGKOK (Reuters – Thailand’s May economic activity showed a gradual improvement, as worries about the pandemic subsided and restrictions eased. The central bank stated Tuesday.

The Bank of Thailand (BOT), stated that there are several issues to monitor, including an increase in prices and shortages of parts, an increase in production costs, and the recovery of the crucial tourism sector.

As COVID infection declines, the country in Southeast Asia has eased most restrictions. It will remove nightlife curbs starting June to boost tourism.

Senior director Chayawadee Chai Anant stated that attracting tourists back to the country is important and would help drive its economy.

BOT projected a 3.2% economic growth rate for 2022 with 5.6million foreign arrivals in March. The BOT will revisit these projections during its June 8th monetary policy session.

2019 saw nearly 40,000,000 foreign tourists.

Chayawadee explained that the weakening baht was moving in accordance with regional currencies. However, it is expected to stay volatile due to global uncertainties.

In April, the economy improved from the previous month with increased private consumption and investment, the BOT said https://www.bot.or.th/English/MonetaryPolicy/EconomicConditions/PressRelease/DocPressRelease/PressEng_April2022_5ha3l.pdf.

The current account deficit in Thailand of $3.4 Billion in April is the highest in nine-years. It was due to a lower trade surplus, higher remittances from foreign businesses and higher profits and dividends.

In April, exports increased by 6.6% over a previous year. Imports were up 19.1% year-on year. There was also a $1.1 million trade surplus.