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Economic Research
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01 December 2016
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Thailand
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Economic
Highlights
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Thailand’s Thailand’s manufacturing
production index (MPI) rose 0.1% YoY in October, decelerating from a 1.1%
climb a month earlier, dragged by contraction in the food & beverage and
vehicles & parts clusters. We concede that Thailand’s 2016 MPI may come just
below our full-year target of 0.7%, compared to a 0.9% gain last year, due to
October’s weak outturn.
We expect
MPI to slow to +0.1% in 2017, weighed by:
i. Weaker
external demand. Global demand is expected to soften in 2017 on slowing
private investment in major trading partners, while higher inflation could
curb consumer demand;
ii. Continued
structural weakness. Thai products are losing competitiveness against
upcoming producers in the CLMV countries. Measures to address this would take
a longer period to implement
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Thursday, December 1, 2016
October MPI Slowdown Expected To Be Temporary
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