The Industrial Sector

Highlights

• The industrial sector includes all manufacturing units in the private sector that produce goods and services through the application of production factors such as land, capital, labor and management, to the process of transforming inputs into goods and services.

• The industrial sector contracted in 2009 along with the global recession with annual industrial GDP falling 5.1 percent below 2008's level. However, positive growth returned in the final quarter, driven by growth in manufacturing for export as the economies of Thailand's trading partners began to recover. This was especially the case for electronics manufacturing and seafood canning. Recovery in the industrial sector continued into February 2010 with the Manufacturing Production Index growing 30.3 percent from February of the previous year.

• High growth levels are projected for 2010, with strong support from exports as the global economy experiences stronger recovery than previously predicted. Growth in industries that depend on domestic markets will be affected by political troubles and their impact on consumption, investment and public sector expenditures. At the same time, growth will be affected by progress in resolving problems in investment projects at Map Ta Phut. If those projects that were suspended by court order are allowed to resume, that will be of significant benefit to large manufacturing and export concerns, yielding, for example, significant growth in petrochemicals. KASIKORN RESEARCH CENTER projects high industrial GDP growth of eight to 14 percent for all of 2010.