Thailand’s manufacturing production index experienced a milder contraction than anticipated, dropping only 0.66% year-over-year in March, buoyed by government stimulus, a surge in exports, and a strong tourism sector, according to a statement from the industry ministry on Wednesday. This figure was significantly better than the 2.35% decline predicted by a Reuters survey and comes after a revised 3.92% decrease in February.
Despite this being the eighth consecutive year-over-year contraction, the index saw a robust 9.2% increase from the previous month, suggesting a positive monthly recovery. Exports played a crucial role, soaring 17.8% year-on-year in March, the highest growth recorded in the past three years, as per customs data.
The industry ministry also emphasized the importance of monitoring the situation regarding U.S. tariffs. Thailand remains one of the Southeast Asian nations most affected by the trade policies of U.S. President Donald Trump, particularly the looming 36% tariff, should negotiations for reduction stall before the global moratorium’s expiration in July.
