Thailand's Industrial Output Declines 0.66% in March

Thailand's industrial and manufacturing output continued to decline in March 2025, with the manufacturing production index falling 0.66% year-on-year, marking the eighth consecutive month of contraction but easing compared to previous months. The decline was less severe than expected, attributed in part to government stimulus measures, robust exports, and tourism, with exports surging 17.8% to reach a three-year high. Automotive production continued to contract, down 6.09% year-on-year in March, though the pace of decline slowed due to increased domestic output of electric vehicles. Finished car exports, however, plunged nearly 15%, impacted by model changes and stricter carbon emission regulations abroad. The industry ministry has raised concerns about potential impacts from U.S. tariffs, warning that Thailand could face significant duties if negotiations do not succeed before the expiration of a global moratorium. Despite ongoing challenges, certain sectors such as computers, apparel, and rubber products posted growth, and total industrial output saw a significant month-on-month increase.