2023 April

The Federation of Thai Industries (FTI) released the survey results of the Industrial Confidence Index in March 2023 at 97.8, up from 96.2 in February 2023 due to increased demand for industrial products and improvement in the construction sector.

The Fetco Investor Confidence Index (Fetco ICI) moved down to the “neutral” zone as amid worries over the U.S and European bank turmoil with local elections as the most supportive factor.

The Manufacturing Production Index (MPI) dropped by 2.71% in February compared to the same time a year earlier. Exports have been hurt by slowing global demand, but domestic demand has improved due to the rebound of tourism. The Bank of Thailand have increased their policy rate to 1.75%, and the country is projected to have economic growth of 3.6%-3.8% and inflation of 2.4%-2.9% in the next two years. February had a -4.7% YoY contraction in exports, a trade deficit of $1.11 billion, and a current account surplus of $1.3 billion. The Excise Department’s decision to increase taxes on sugary beverages, in addition to rising raw material costs from the ongoing drought, have increased the cost of doing business. Thailand recently secured a 500-million-baht durian deal with Yunnan province.