Energy Price Crisis Hammers Regional Economic Outlook Index, Signaling Weakness
Rising energy prices and production costs are slowing economic expansion across all Thai regions in April 2025, with the Southern Region's outlook index at 60.6 driven mainly by service and industrial recovery.
The Office of the Fiscal Policy Office (FPO) reports that the April 2025 Regional Economic Outlook Index signals decelerating economic expansion across all regions, driven by pressure from rising energy prices and production costs. Fiscal Policy Office Director Winit Wisetsuwannaphumi, speaking as the Finance Ministry spokesperson, disclosed that while some regions including the Eastern and Northern zones continue to expand, supported by tourism recovery and industrial sectors benefiting from Middle East conflict mitigation measures, agricultural demand remains steady.
The Eastern Region's confidence index stands at 66.0, reflecting solid economic expansion supported by service sectors and new tourism development policies, plus agriculture buoyed by sustained agricultural product demand. The Eastern Economic Corridor (EEC) maintains positive signals at 66.5, with service and agricultural expansion as primary drivers.
The Northern Region's index reaches 65.8, reflecting economic expansion particularly in industry and services, supported by government mitigation measures for Middle East tensions, the tourism season, and favorable weather conditions. The Southern Region index sits at 60.6, indicating expected economic expansion driven by service and industrial sectors, continuing recovery support for flood-affected Hat Yai areas, rising orders from trading partners, and expanding palm oil and rubber processing industries.
The Northeastern Region's index stands at 59.5, supported by agriculture entering rice harvest season—a primary economic crop—and services from provincial tourism promotions in provinces like Chaiyaphum, Yasothon, and Buriram. The Central Region index reaches 56.2, supported by industry and investment sectors under government investment stimulus measures. Bangkok and its metropolitan area register 52.9, with employment sectors as primary support. The Western Region's index is lowest at 48.6, reflecting slowed confidence in agriculture and industry, pressured by rising cultivation costs from chemical fertilizer prices and energy price uncertainty.
Director Winit noted that despite many regions maintaining indices above the 50.0 threshold indicating expansion potential, all regions show month-on-month declines. This reflects pressure from rising production costs and Middle East uncertainties, impacting both Thai and global economies with potential continued effects on manufacturing and agricultural sectors ahead.
