Economic recovery on track
Despite export contraction of 6.8 per cent in March, the Bank of Thailand witnessed continued economic recovery from last year's floods. The recovery also raised inflationary pressure in the month, on concern over the minimum wage hike.
“Manufacturing production results were better than expected. Earlier, the automobile sector was projected to take a full recovery in the second quarter of this year. However, based on the latest figures, production has nearly returned to normal level as some least-effected automakers have produced cars to make up for lost production,” said Mathee Supapongse, senior director at the central bank.
Official figure showed that March's import value rose 21.5 per cent on year to US$21.1 billion, while export value dropped to $19.7 billion.
The export figure was poorer than expected. Moody's Investors Service earlier expected Thailand to post export growth rate of 0.1 per cent and a trade surplus of $1 billion in March, from February $2.1 billion.
Though the overall Manufacturing Production Index contracted by 3.2 per cent year-on-year in March, the Manufacturing Production Index (MPI) for vehicles advanced by 14.7 per cent, compared to 10.7 per cent in February. March’s capacity utilization for vehicles rose to 112 per cent from 97 per cent a month earlier.
Private consumption and investment witnessed continuous growth after supply chain disruption that caused good shortages, Mathee said. The Private Consumption Index grew by 3.7 per cent year-on-year in March. The Private Investment Index rose by 9 per cent year-on-year in the same month, given rising investment in commercial cars and a surge in imports of capital goods in several industries including electronics, electrical appliances, automobile, and machinery and equipment.
Inflationary pressure continued to rise this month after increases in the past 3-4 consecutive months, Mathee said.
