The FTI said China's reopening would also support Thai tourism and exports in the second half of the year, but global economic and geopolitical problems remained a risk. The FTI said its index for industrial sentiment for the next three months also increased in March to 106.3 from 103.2 in February. The group said spending ahead of a May 14 election was a short-term boost to the economy and it urged the next government to support longer-term growth while improving competitiveness and expanding export markets. Firms were still worried about high costs, rising interest rates and baht fluctuation, the FTI said. "Larger industrial sectors mostly export and have been impacted by softer global demand. A volatile baht also makes export decisions difficult," Sorakit added. Thai exports, also a key driver of growth, declined for a fifth straight month in February and exporters did not expect a rebound until the second half of 2023. (Reporting by Orathai Sriring and Satawasin Staporncharnchai; Editing by Martin Petty)
BANGKOK, April 19 (Reuters) - Thailand's industrial
sentiment in March reached its highest level in a decade,
boosted by a rebound in domestic demand and tourism, but high
costs, slowing global growth and baht volatility were a worry,
an industries group said on Wednesday.
The industries sentiment index of the Federation of Thai
Industries (FTI) rose to 97.8 in March from 96.2 in February,
when it had returned to pre-pandemic levels.
Southeast Asia's second-largest economy is expected to
continue recovering, driven by the vital tourism sector and
consumption, the FTI said.
"Entrepreneurs are less concerned over the domestic economy
as domestic consumption and tourism are good," FTI Deputy
Secretary-General Sorakit Manbuphachat told a news conference.
The government is forecasting 25-30 million foreign tourist
arrivals this year after receiving 11.15 million last year,
compared to nearly 40 million in pre-pandemic 2019.
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