Thailand Current Account Surplus on narrow trend

Thailand's Current Account recorded a surplus of 1.1 US$ billion in July 2018, compared with a surplus of 4.1 US$ billion in the previous month. A surprise narrower current account surplus of 958 US$ million in May, 2018 compared to 1.4 US$ billion in April 2018. Thailand's Current Account Balance had reached an all-time high of 7.6 US$ billion in Feb 2016 and a record low of -3.7 US$ billion in Apr 2013. After a strong run in surplus for the last four years, Thailand’s external payments have started to weaken and expected to continue the weak trend as the global trade war threatens export, lack of confidence in emerging market and rising oil prices boosting imports.

Weakening external payments are negative for the Thai Baht (THB). The currency is one of the Asia’s worst performer for last couple of months. A reversal of fortune from being Asia’s outperformer last year through early this year.