The uptick in domestic demand and tourism in Thailand helped boost industrial confidence in February to its highest level in 47 months, but sluggish exports continue to be a cause for concern.
After a drop to 93.9 in January, the Federation of Thai Industries (FTI) reported that its industries sentiment index increased to 96.2 in February.
After exceeding its objective in 2022 with 11.15 million visitors, the government predicts that the tourism sector will attract 25-30 million international tourists this year.
At a press conference, FTI Chairman Kriengkrai Thiennukul cited the opening of China’s borders and the declining prices of raw commodities as reasons for optimism.
The FTI index, which looks ahead three months and predicts business optimism, also rose in February.
There will be a general election in Thailand in May, and the organization has encouraged the government to keep public expenditure as normal as possible throughout that time.
According to the organization, businesses are nonetheless worried about declining exports due to weakening worldwide demand in the face of rising global interest rates, inflation, and currency instability.
Nevertheless, exports, which have been a major contributor to Thailand’s economic expansion, fell for a fourth consecutive month in January on weaker demand from abroad. As reported by the FTI, exports are likely to remain steady or dip by as much as 1 percent in 2018.
