OIE reveals that the MPI index in 2023 shrank by 5.11%.

Bangkok, The Office of Industrial Economics (OIE) revealed that the Industrial Production Index (MPI) for December 2023 stood at 87.76, shrinking 6.27 percent compared to the same period last year. As a result, the whole year 2023 shrank by 5.11 percent due to the domestic economy still recovering slowly and the global economy slowing down. However Exports of industrial goods in December 2023 expanded by 3.22 percent for the third consecutive month. It is expected that the MPI index will improve after this. Mrs. Worawan Chittarun, Director of the Office of Industrial Economics (OIE), revealed that the Industrial Production Index (MPI) for December 2023 stood at 87.76, shrinking 6.27 percent compared to the same period last year, resulting in the index MPI for 2023 shrank by 5.11 percent, with a capacity utilization rate in December at 55.25 percent and for the whole year 2023 at an average of 59.06 percent because the domestic economy is still recovering slowly from the problem of high household debt. causi ng consumers to remain cautious in spending and loan interest rates The increase in financial costs and debt burden of entrepreneurs increases. In addition, the economies of trading partners continue to slow down. As a result, most industries slowed down production. However, exports of industrial goods (excluding gold, weapons, tanks, and combat aircraft) in December expanded by 3.22 percent, expanding continuously for the third month, which has returned to expansion. It is expected that this will result in the MPI index improving after this. As for the overall industrial economic warning system of Thailand in January 2024, it "sends a watchdog signal" with signs of recovery starting from domestic factors. From the index of the quantity of Thai imported goods increasing, domestic factors mostly send signals of caution. Both confidence in the industrial sector that sent out surveillance signals decreased. Thailand's private investment remains stable. and Thai business confidence increased slightly. Meanwhile, foreign factors continue to send signals of caution. and there is high uncertainty due to geopolitical risks. This is because there will be elections for leaders of key trading partners including Indonesia, India and the United States. including global financial fluctuations and the Chinese economy that will affect the tourism sector However, the overall production of most industries in 2023 will shrink due to the slow recovery of domestic economic factors. Including the economy of most trading partners still slowing down. Meanwhile, tourism that meets the set goals results in the recovery of related industries. Prominent industries that will expand in 2023 include products derived from petroleum refining, sugar, wires and other cables, palm oil, and artificial fibers. 'Although the overall Thai industrial economy is beginning to show signs of recovery, But in order to raise the level and expand the export value of Thai products. The Thai production sector should focus on products that the world needs based on the potential that Thailand has an advantage, such as agricultural products and processed food. Emphasis should be placed on the development of value-added products. More than exporting basic or primary processed products which have little value,' Mrs. Worawan said. The main industries that have a positive effect on the December 2023 Production Index compared to the same period last year include products obtained from petroleum refining. Wire and other cables, pulp, paper and cardboard Semi-finished and ready-made plastic products, artificial fibers. Source: Thai News Agency