Hanoi (VNA) - Thailand's Industry Ministry has reported that the country’s factory output contracted in August and was weaker than forecast, as slowing exports, falling tourist numbers and a strong baht weighed on the economy.
According to the ministry, Thailand's August manufacturing production index fell 4.19% from a year earlier. Negative factors included a weaker car industry and a decline in industrial sentiment, it said.
Thai exports grew 5.8% in August from a year earlier, the slowest pace in nearly a year due to the stronger baht and the impact of US tariffs, according to the Thai Commerce Ministry. The commerce ministry aims to conclude a reciprocal tariff agreement with the US by the end of the year, Minister Suphajee Suthumpun told parliament late on September 29.
The ministry will also seek to expand trade in markets like Japan, Singapore, South Asia and the Middle East, and accelerate free trade agreement negotiations with the European Union and the Republic of Korea, Suphajee said.
Southeast Asia's second-largest economy is projected to expand by 1.8-2.3% this year and slow down sharply in the second of 2025 due to the impact of US tariffs./.
ADB lowers Thailand’s GDP growth forecast
In its latest Asian Development Outlook (ADO) report, ADB projects Thai GDP to expand 2% this year, down from 2.9% forecast in April, with the economy slowing in the second half as front-loaded shipments to the US end.
