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Thailand: Manufacturing revival to propel economy
The Thai economy is expected to grow over the next 1-2 months, driven by higher demand for industrial products and exports, following a rise in the Manufacturing Production Index (MPI) in March to 109.32 points, the highest level since April last year, says the Office of Industrial Economics (OIE).
The projection is calculated by the “Early Warning System — Industry Economics”, a tool used by the OIE to monitor key economic indicators, including supply and demand in the manufacturing sector.
Demand for industrial products is expected to rise as exports are growing amid economic recovery in overseas markets, following the easing of Covid-19 measures in many countries, said Thongchai Chawalitpichaet, director-general of the OIE.
However, the Russia-Ukraine war, which is blamed for pushing up global energy prices and inflation, remains a wild card that may affect the economy, he said.
The MPI fell 0.12% year-on-year in March to 109.32 points, but when compared with the February MPI, the index increased by 7.49%, causing the MPI in the first quarter of 2022 to increase by 1.41% year-on-year.
Capacity utilisation stood at 68.7% in March.
Industry Minister Suriya Jungrungreangkit is positive about continual growth in the industrial sector, driven by exports.
In March, total Thai exports expanded by 19.5%, the highest rate in 30 years, he said.
Exports of industrial products alone grew by 7.2% in the same month, with a value of US$20.7 billion.
Imports of capital and intermediate goods, as well as raw materials, also increased by 5.6-11.5% in March. This also indicates that manufacturing is expanding, said Mr Suriya.
Sugar production was one of the key industries which contributed to the growth of the MPI in March. Sugar manufacturing expanded by 61.2% year-on-year due to more sugar cane and a longer sugar cane-crushing period, according to the OIE.
Petroleum production, especially in the jet oil and diesel categories, rose by 17.5% year-on-year as the number of foreign and Thai tourists increased.
Beer production also increased by 9.33% year-on-year as the government relaxed restrictions on selling alcoholic drinks in shops.
Source: https://www.bangkokpost.com/business/2302250/manufacturing-revival-to-propel-economy