BANGKOK, 29 Jan 2014 The Office of Industrial Economics (OIE) has projected that the 2014 Gross Domestic Product (GDP) in the manufacturing industry would grow 3-4%, thanks to the gradual recovery of global economy and car industry.
The OIE pointed out that the Manufacturing Production Index (MPI) in December 2013 stood at 168.70 points, a plunge of 6.17% from the same period of the previous year. The drop was a direct result of a decline in the production of Hard Disk Drive, canned seafood, and frozen food. The OIE said the industrial sector only utilized 60.14% of its production capacity last month, adding that 2013’s industrial production index contracted 3.2% year-on-year with 64.38% of the country’s manufacturing capacity spent.
The OIE projected this year’s industrial growth would expand 3-4% while the MPI is likely to grow in the range of 1.5-2.5%. The OIE cited the recovery of global economy and resumption of normal car production in the country as well as the government’s investment as the main contributing factors to the optimistic figures.
Nonetheless the Office of Industrial Economics indicated that risk factors threatening the industrial sector’s growth this year include limited household spending power prompted partially by the global agricultural product prices. The factor will influence the income of local agricultural operators, it explained. Another key element is the lower than expected government spending which affects investment decisions by the private sector.
