Thai Stimulus Program Could Boost Industrial GDP 1.3-1.6%

Thailand's Industrial Economics Office (SEPO) Director Suphakij Bunsiri announced analysis showing the Thai Help Thai Plus program could support industrial sector GDP growth of approximately 1.3% if Middle East tensions persist, or 1.6% if the situation resolves. Key beneficiary industries include non-alcoholic beverages, food products, consumer goods, textiles, apparel, and packaging.

May's Manufacturing Production Index (MPI) registered 101.18, contracting 0.80% year-on-year, with production capacity utilization at 59.64%. The automotive industry led the decline with an 8.68% contraction due to weakening domestic and export markets, compounded by elevated inflation pressuring production costs and household purchasing power. Middle East tensions continue straining manufacturing costs, and industrial confidence declined to 84.7 from 85.3 the previous month.

However, government stimulus measures provide support, particularly the Thai Help Thai Plus program boosting consumer spending and purchasing power, expected to benefit consumer goods production and related industries. Industrial exports have expanded for 22 consecutive months, and returning foreign tourists support sectors including frozen prepared foods, frozen shrimp, canned fruits, and sneakers.

SEPO projects Thailand's June industrial outlook faces continued headwinds from slowing vehicle investment and reduced food and beverage sector orders due to rising packaging costs. Globally, major economies show manufacturing slowdowns amid Middle East conflict concerns, with Europe signaling caution and ASEAN facing rising energy costs. However, China's expanding exports may signal early world trade recovery signs. The office will monitor developments closely to support Thai industry adaptation and competitiveness.