(CTN News) – Thailand’s manufacturing sector is experiencing a long-awaited resurgence as the manufacturing production index unexpectedly rose by 3.43% in April compared to the same period last year.
This significant uptick, marking the first increase in 19 months, has been attributed to a combination of factors including heightened exports and a revival in tourism, according to the country’s industry ministry.
Contrary to predictions of a 1.1% decline, the actual figures surpassed expectations, showcasing the resilience and potential of Thailand’s industrial landscape. The April surge follows a 5.13% dip in March, indicating a notable turnaround in fortunes for the sector.
Siripen Kiatfuengfoo, deputy director-general of the Office of Industrial Economics, emphasized the importance of this positive momentum, particularly against the backdrop of a challenging economic climate.
“It’s good news. It’s the first month of growth after 18 consecutive months of contraction,” she stated during a news conference.
The rebound in April’s output can be attributed, in part, to the low base effect from the previous year. The pandemic-induced downturn in 2020 created a favorable comparison for this year’s figures, contributing to the observed growth.
Despite the overall improvement, factory output for the January-April period still experienced a decline of 2.06%. However, the industry ministry remains optimistic about the future trajectory, projecting a potential rise between 0% to 1% for the full year.
In addition to a resurgent manufacturing sector, Thailand’s tourism industry has shown signs of recovery. With 14.33 million foreign visitors recorded between January 1 and May 26, representing a remarkable 38% increase year-on-year, the sector is regaining its momentum.
Thailand’s Economic Resurgence: Manufacturing and Tourism Lead the Charge
Notably, Chinese visitors accounted for 2.8 million of these arrivals, contributing significantly to the overall tourism expenditure, which amounted to 683 billion baht.
The positive trends extend beyond domestic borders, with Thailand’s exports returning to growth in April, surpassing analysts’ expectations. The commerce ministry anticipates continued momentum in the second quarter, with expectations of further gains in shipments.
As Thailand navigates the complexities of a post-pandemic recovery, the resurgence in manufacturing, supported by robust export performance and a revival in tourism, provides a glimmer of hope for the country’s economic revival.
With prudent policies and continued momentum, Thailand aims to build on these foundations to propel its industrial and economic growth in the months ahead.
