BANGKOK, 1 July 2015 – Lack of recovery in the global economy and diminished domestic purchasing power have resulted in industrial output dropping by 7.6% in the month of May, although the situation is expected to improve in the latter half of this year, according to the Office of Industrial Economics (OIE).
Udom Wongwiwatthanachai, director of the OIE, indicated that the relocation of production bases for electronics products away from Thailand also contributed to the drop in output of certain products, such as hard disk drives, automobiles, televisions and jewelry.
However, the OIE expects a recovery in the sectors of automobiles, chemicals, cement and garments due to stronger demand in the latter half of the year. Exports to Cambodia, Laos, Myanmar and Vietnam – CLMV countries – are also expected to contribute to a better industrial output figure. Exportation to the CLMV countries expanded by 9% in the first five months of the year.
Mr. Udom expects industrial output to return to positive growth in the latter period of the third quarter thanks to more state spending and the expected recovery of the exports sector.