Industrial sentiment in February reached a 47-month high, bolstered by a rebound in domestic demand and tourism, but weak exports were a concern, the Federation of Thai Industries (FTI) said on Wednesday.
The industries sentiment index rose to 96.2 in February from 93.9 in January, marking a return to pre-pandemic levels.
The tourism sector, is expected to see between 25 million and 30 million foreign arrivals this year, the government has said, after beating its target in 2022 with 11.15 million visitors.
Positive factors include China’s border opening and the lower costs of raw materials, FTI chairman Kriengkrai Thiennukul told a news conference.
The FTI urged the government to avoid any disruption in public spending before and after the general election in May. A new government is not expected to be formed until August.
“We want budget disbursements to continue as planned to support the economy until we have a new government,” Mr Kriengkrai said.
Industries are still concerned about falling exports as global demand has weakened at a time of high global interest rates and inflation as well as currency volatility, the FTI said.
Exports, a key driver of growth, dropped 4.5% year-on-year in January, the fourth straight month of declines as global demand weakened. The FTI expects exports to be flat or to fall by up to 1% this year.
