Thailand’s industrial sentiment index experienced its second consecutive monthly increase in November, reaching its highest point in eight months. This positive trend is attributed to robust export performance and a revitalized tourism sector, according to a statement released on Wednesday by the Federation of Thai Industries (FTI).
The FTI’s industrial sentiment index climbed to 91.4 in November, up from 89.1 in October. Thailand’s economic growth relies heavily on tourism and exports. Increased year-end orders and sustained government spending also contributed to the improved sentiment.
The FTI anticipates that government economic initiatives will provide crucial support to Thailand’s economy, the second largest in Southeast Asia, during the first quarter of 2025.
Despite the positive short-term outlook, the federation’s three-month forward-looking sentiment index declined, falling to 96.7 in November from 98.4 in October. This decrease reflects growing concerns over several factors, including potential shifts in U.S. trade policies, ongoing geopolitical uncertainties, and the Thai government’s proposed increase in the minimum wage to 400 baht ($11.70).
The planned minimum wage increase has sparked debate among businesses and policymakers. While proponents argue it will boost consumer spending and reduce income inequality, critics express concerns about its potential impact on business costs and competitiveness.
The FTI’s report highlights the complex interplay of factors influencing Thailand’s economic outlook. While the current surge in exports and tourism provides a strong foundation for growth, looming challenges related to global trade, geopolitics, and domestic policy decisions warrant careful monitoring. The delicate balance between these positive and negative influences will likely shape the trajectory of Thailand’s economy in the coming months.
