Chiang Mai: The overall economy in the North improved in the final quarter of last year as a result of increased local events and flights during the tourism high season. This trend is expected to carry over to the current quarter, says the Bank of Thailand (BoT).
Pornvipa Tangcharoenmonkong, director of the BoT's northern regional office, summarised economic conditions in the North at a recent media briefing.
She said consumption expanded due to the government's economic stimulus measures, as well as post-inundation rehabilitation projects for communities hit by severe flooding late last year.
Industrial output also increased in line with trade partners' rising demand for processed foods and electronic components.
She said that while budget disbursements had accelerated, state investment continued to shrink. Farmers' incomes also declined as a result of falling prices of major crops and the employment rate dropped slightly, Ms Pornvipa said.
The headline inflation also increased from the previous quarter mainly due to higher energy inflation. This was partly the result of the low base effect of the government's energy price subsidies last year.
Regarding projections for the first quarter of 2025, Ms Pornvipa said the economy in the North is expected to improve slightly due to growth in tourism and increasing flights, while the export-oriented manufacturing sector will keep expanding, particularly in food processing and electronic components.
She warned PM2.5 remains a major health concern for people in the region particularly during the transition from the cold season to summer.