National —
On October 16th, 2024, Mr. Nava Chantanasurakon, the Vice Chairman of the Federation of Thai Industries (FTI), announced that Thailand’s Industrial Confidence Index fell to 87.1 in September, down from 87.7 in August.
The decline is attributed to the widespread flooding in northern, northeastern, and thr central regions, which severely impacted homes, agricultural areas, industries, and tourism, with an estimated economic loss between 30-50 billion baht, remarked Nava.
Aside from the flooding, the weak domestic purchasing power, driven by high household debt, has further dampened sales of durable goods, with car sales dropping 24% and motorcycle sales declining 11% in the first eight months of 2024, according to Nava.
Delays in government spending on public projects, along with challenges from cheap Chinese imports and a rapidly appreciating baht (1 US dollar = 33.25 baht as of press time), have also intensified pressure on the manufacturing sector, reported Nava.
Despite these challenges, Nava revealed that the tourism sector continues to boost the economy.
Between January 1st and September 29th, 2024, Thailand welcomed 26,005,295 international tourists, a 30% increase from last year, generating a total revenue of 1.21 trillion baht.
Key markets driving this growth include China, the United States, ASEAN, Europe, India, and the Middle East. Tourism is expected to remain a key driver of economic growth, helping to offset some of the industrial sector’s downturn.
Additionally, the government’s 10,000-baht cash rollout program for 14.5 million welfare cardholders and disabled individuals at the end of September provided a temporary boost to domestic consumption, particularly for consumer goods, said Nava.