*
Dec current account turns to $1.1 bln surplus
*
Dec exports -12.9% y/y; trade surplus $1.0 bln
*
Tourism increases but global demand slows
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BOT to smooth out any excessive moves in baht
(Adds detail, comment from official)
BANGKOK, Jan 31 (Reuters) - Thailand's economic recovery
maintained its traction in December, boosted by increased
tourism and domestic consumption, but exports were affected by
the slowing economies of trading partners, the central bank on
Tuesday.
Economic activity was likely to improve steadily as the
vital tourism sector gained momentum, the Bank of Thailand said
in a statement, adding it would monitor the global economy,
costs and China's reopening.
Tourism has performed better than earlier expected as China
reopened sooner than thought, Assistant BOT Governor Chayawadee
Chai-Anant told a news conference.
Last week, the BOT raised its projections for foreign
tourist arrivals to 25.5 million this year and 34 million next
year, up from 22 million and 31.5 million, respectively. There
were nearly 40 million visitors in pre-pandemic 2019.
With China's reopening, the government is predicting at
least five million Chinese visitors this year.
In 2022, Thailand beat its tourism target with 11.15 million
foreign visitors, a surge from less than half a million in the
previous year.
The tourism rebound has helped lift the baht , which
has risen about 5.4% against the dollar so far this year,
becoming Asia's best performing currency.
The baht strength has also been helped by better economic
fundamentals and its impact on exports was small, while capital
flows remained normal, Chayawadee said.
The BOT would only take action on the currency if it was too
volatile, to help prevent an excessive impact on the economy,
she added.
In December, exports, also a key driver of growth, dropped
12.9% year-on-year in December, with imports down 10.5% and a
trade surplus at $1.0 billion.
Thailand recorded a current account surplus of $1.1 billion
in December after a deficit of $0.4 billion the previous month.
In the final quarter of 2022, Southeast Asia's
second-largest economy continued to improve from the previous
three months on tourism but exports slowed, the BOT said.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and
Satawasin Staporncharnchai
Editing by Ed Davies, Martin Petty)
