Thailand’s Industrial Output Contracted by 5.1% In 2023

Thailand’s industrial output contracted by 5.11% in 2023 due to slow recovery of the domestic economy, slowdown of trade partner economies, high household debt, cautious consumer spending, rising interest rates, and increased debt burden for consumers and businesses.

• Manufacturing production index (MPI) contracted by 5.11%.
• Capacity utilization rate in 2023 was at 59.06%.
• Slow recovery of the domestic economy, slowdown of trade partner economies, and high household debt caused cautious consumer spending.
• Rising interest rates impacted financial costs and increased the debt burden for consumers and businesses.

But Thailand’s industrial output expanded for the third consecutive month in December, which is expected to have a positive impact on the future Manufacturing Production Index (MPI).

• Industrial goods excluding gold, weapons, tanks, and combat aircraft saw a growth of 3.22% in…