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Thailand: Ministry expects MPI to increase in second half
The Industry Ministry remains positive about manufacturing, expecting the manufacturing production index (MPI) to keep increasing in the second half of this year after the indicator fell slightly in June by 0.08% year-on-year to 98.05 points.
This will lead to slow economic recovery, but the economy is believed to continue to grow in the next six months, said Industry Minister Suriya Jungrungreangkit.
The ministry expects the MPI in 2022 to grow by 1.5-2.5%. It also believes GDP in the industrial sector will grow by 2-3%, thanks to the government’s easing of measures against the pandemic and the reopening of the country since late last year.
The weaker baht also helped boost new purchase orders of Thai products, notably in the food sector. Authorities expect exports of processed food to generate more than 1.3 trillion baht.
Despite a fall in June, the MPI during the first six months of this year managed to increase by 0.48% year-on-year, according to the Office of Industrial Economics (OIE).
The capacity utilisation rate in the same period stood at 63.8%.
Siripen Kiatfuengfoo, deputy director-general of the OIE, said she expects the tourism industry, which benefits from the reopening policy, to play a more important role in boosting the economy.
Economic activities are also gradually recovering as seen in the petroleum business and other industries related to tourism, including car manufacturing, bags, shoes, jewellery, and beer, she said.
In June, petroleum production expanded by 18.5% year-on-year due to increasing demand for jet fuel and diesel, following the easing of travel restrictions as well as bustling transportation and logistics businesses, according to the OIE.
Car manufacturing also increased by 4.25%, driven by sales of pickups.
Beer production rose 27% as factories expanded their production capacity to serve growing demand.
Source: https://www.bangkokpost.com/business/2357421/ministry-expects-mpi-to-increase-in-second-half