2025-01-20
Thailand's manufacturing confidence index fell in December 2024, a decline attributed to uncertainties over US trade policy. The index fell to 90,1, down from 91,4 in November, according to the Federation of Thai Industries (FTI). The decline was driven by factors such as reduced production, rising costs of agricultural inputs and weaker vehicle sales.
The uncertainty surrounding US trade policy decisions is not unique to Thailand, but is affecting economies around the world. Many countries, especially export-dependent economies, face similar challenges. The impact of potential trade restrictions and tariffs is creating global concern, affecting investment and trade.
To address these challenges, the Thai government is considering strategic measures, such as tax breaks and financial support for small and medium-sized enterprises. The Federation of Thai Industries also recommends the establishment of a special working group, a so-called “war room”, to analyze and manage the impact of US trade policies on Thailand’s export sector.
Despite the challenges, the industry sees some bright spots, such as new free trade agreements and a recovery in tourism. The government is expected to implement several stimulus measures in 2025 to strengthen the industry’s competitiveness and protect Thailand’s economic growth in a time of global uncertainty.
Text: The editorial staff
Image license: TheDigitalArtist, Pixabay, original image