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Thailand: MPI expands 14.5% amid reopening, export growth
Thailand’s Manufacturing Production Index (MPI) increased by 14.5% year-on-year to 99.28 points in August, and rose by 3.71% from July, thanks to export growth and the reopening of the country.
“The car, motorcycle and petroleum industries have kept growing since the recovery of the tourism industry,” said Industry Minister Suriya Jungrungreangkit.
Capacity utilisation in August stood at 63.7%.
From January to August, the MPI was at 99.81 points, a year-on-year increase of 2.72%, according to the Office of Industrial Economics (OIE).
Mr Suriya expects the MPI to continue to increase for the rest of this year because new goods purchase orders are rising and the government’s economic stimulus packages, like the fifth-phase co-payment scheme, will boost people’s purchasing power.
However, there are factors that may impact the Thai economy which must be closely monitored, said Siripen Kiatfuengfoo, deputy director-general of the OIE.
They include the ongoing war between Russia and Ukraine, which is blamed for driving up global oil prices, tensions between China and Taiwan, the global semiconductor shortage, and the baht depreciation.
The OIE is also aware of the possibility of a global economic slowdown.
Earlier this month the World Bank said that central banks’ decisions to raise interest rates may lead to a global recession in 2023.
The sectors which drove the August MPI included the automotive industry, which grew by 63.3% year-on-year due to higher demand, especially in the pickup and diesel-powered car segments.
Petroleum manufacturing also expanded by 17.6% year-on-year due to higher consumption of jet fuel and diesel after the government reopened the country and relaxed travel restrictions.
Production of air conditioners also increased by 54.6% year-on-year, thanks to higher demand in overseas markets. A need for air conditioners at a large exhibition event, scheduled to be held in September, also drove demand in the country.
Source: https://www.bangkokpost.com/business/2402683/mpi-expands-14-5-amid-reopening-export-growth