Bangkok: The Office of Industrial Economics (OIE) has disclosed that the Industrial Production Index (MPI) for April 2025 stood at 92.30, marking a 2.17 percent increase from the same period last year. This growth was fueled by a resurgence in the automotive industry and government economic stimulus measures. However, the OIE has adjusted the MPI estimate for the entire year to an expansion of 0-1 percent, while anticipating the GDP of the industrial sector to grow by 0.5-1.5 percent.
According to Thai News Agency, Mr. Phasakorn Chairat, Director of the Office of Industrial Economics, highlighted that the capacity utilization rate was at 56.51 percent in April, indicating a rise in industrial production. The automotive industry contributed to this recovery, expanding by 1.34 percent, driven by car deliveries from the Motor Show 2025 and various economic stimulus initiatives, including the Khun Su Rao Chuay project and the 10,000 baht economic stimulus project. The relaxation of housing loan criteria and an interest rate cut by the Monetary Policy Committee (MPC), along with the delayed US import tax increase, further stimulated industrial activity. These factors led to a 16.60 percent increase in the value of industrial exports and an 11.50 percent rise in industrial product exports, excluding specific categories, compared to the same period last year.
Despite these positive indicators, uncertainty surrounding US import tariff measures could potentially hinder international trade. Consequently, OIE revised its MPI index forecast for 2025 to a 0-1 percent expansion, and adjusted the industrial sector GDP growth prediction to 0.5-1.5 percent, down from previous estimates of 1.5-2.5 percent.
The Thai industrial economic warning system in May 2025 indicated 'continuous monitoring signals.' Domestic factors included a slowdown in private investment and declining industrial confidence due to US trade policy uncertainties. Externally, the situation remained stable, with slight improvements in the European Union's manufacturing sector, continued contraction in Japan, and ongoing concerns in the US about import tax policies.
Mr. Phasakorn stated, "OIE adjusts the MPI index estimate for 2025 to expand between 0-1 percent from the previous estimate of 1.5-2.5 percent, and the industrial sector GDP for 2025 is expected to expand by 0.5-1.5 percent from the previous estimate of 1.5-2.5 percent, which is in the same direction as other economic agencies, with the main causes being the increase in import tariffs from the United States and the problem of importing cheap goods from abroad."