The Bank of Thailand (BOT) disclosed the economic and financial conditions for December and the fourth quarter of 2023, reporting a slowdown in the overall expansion of the Thai economy.
It was noted that the value of exports, excluding gold and adjusted for seasonal factors, remained stable from the previous month. The decrease in exports across several products was attributed to the sluggish global demand, structural issues hindering exports, and the impacts of drought problems.
Specifically, the exports of white rice to Indonesia and South Africa declined due to reduced rice production. Exports of machinery and equipment to Japan and the U.S. also fell, along with a continuous decrease in petrochemicals and chemicals exports, following China’s shift towards increased domestic production and reduced import demand in ASEAN countries.
However, some export categories saw an increase, such as personal and commercial vehicles to Australia, diesel fuel to ASEAN countries, and hard drives to Hong Kong and China, following the product delivery cycle.
According to the BOT, the industrial production index, adjusted for seasonal factors, continued to decline, especially in the automotive sector, mainly due to the production of commercial vehicles. This was partly influenced by financial institutions being cautious in extending credit, coupled with the increasing trend of imported electric vehicle use. While the petroleum and hard disk drive sectors saw a reduction due to producers gradually clearing inventory after significant prior production, the food and beverage sector increased, primarily driven by sugar production.
Private sector investment indicators, adjusted for seasonal factors, decreased after a previous acceleration, in line with industrial production and goods export trends.
Investment in machinery and equipment fell, following a decrease in capital goods imports and new commercial vehicle registrations, while domestic sales of machinery and equipment increased. Investment in the construction sector declined due to lower sales of construction materials, although the area permitted for construction showed an increase. (NNT)
