BANGKOK, Aug. 31 (Xinhua) -- Thailand's economic growth increased in July on a monthly basis, supported by the global technology and artificial intelligence upswing, easing conflict in the Middle East, and government stimulus measures, the Bank of Thailand said on Monday.

People stroll at a shopping mall in Bangkok, Thailand, Nov. 5, 2024. (File photo: Xinhua)

According to the central bank, merchandise exports excluding gold advanced 2.3 percent in July from a month earlier, mainly driven by electronics shipments that also contributed to improved manufacturing production.

However, exports remained heavily reliant on imported inputs, while private investment dipped 0.3 percent month-on-month as machinery and equipment spending cooled after an earlier acceleration, the central bank said in a statement.

Tourism strengthened on higher receipts and a rise in foreign arrivals, especially from long-haul markets, as flight capacity recovered due to easing tensions in the Middle East and seasonal demand during the summer school break, said the central bank's senior director Pranee Sutthasri.

Private consumption rose 1.2 percent compared to the preceding month on stronger spending in services, particularly dining, supported by government measures and domestic tourism during a special long holiday, Pranee told a news conference.

She noted that headline inflation dropped from the prior month as energy costs fell on lower imported oil prices and reduced contributions to the state Oil Fuel Fund, though core inflation edged up slightly owing to cost pass-through in processed food and food ingredients.

Looking ahead, the central bank expects the Thai economy to continue recovering, yet the rebound remains uneven, with key drivers including exports and private investment.

Meanwhile, government measures, reduced inflation, and rising labor income are lifting household consumption as agricultural prices and tourism strengthen, the official added.