Dr. Pipat suggests adjusting MPI index to reflect new economy

MGR Online•Politics•4d ago

Reader Briefing

Dr. Pipat Luengnaruemitchai analyzes contradictions in Thai economic indicators and suggests updating the MPI index to better reflect structural changes.

•Dr. Pipat Luengnaruemitchai states that no single economic indicator currently provides a complete overview of the Thai economy.
•July manufacturing PMI rose to 54.2, while June MPI contracted by 3% and Q2 GDP grew only 1.9%.
•Thailand has entered the global supply chain for new industries such as AI, hard disks, and data centers.
•Structural problems in old industries like automobiles, petrochemicals, and electrical appliances continue to weigh down the overall economy.

Overview

•Dr. Pipat Luengnaruemitchai noted on August 22 that Thai economic indicators are diverging because the economic structure is changing rapidly.
•The July manufacturing Purchasing Managers' Index (PMI) reached 54.2, while the June Manufacturing Production Index (MPI) contracted by 3%.
•GDP for the second quarter grew by 1.9%, which Dr. Pipat Luengnaruemitchai identified as the lowest among major Asian countries.
•Thailand is now part of global supply chains for AI-related investments, including photonics parts, network equipment, and data centers.
•The overall economy remains suppressed because large 'loser' industries like automobiles and petrochemicals are shrinking while 'winner' industries are still small.
•Dr. Pipat Luengnaruemitchai observed that measuring by 'number of units' in the MPI may understate growth, as modern hard disks have significantly higher capacity than in the past.
•High import content in new activities, such as importing servers for data centers, contributed to low GDP growth in the second quarter despite strong exports and investment.
•Dr. Pipat Luengnaruemitchai suggests allowing resources such as labor, capital, and land to move from uncompetitive industries to new industries with more opportunity.

Full article content is available on the original source.

Read on MGR Online (Thai Version)View in Google Translate

Source: MGR Online (Original)

View Original Article

Key Entities

Person

Dr. Pipat Luengnaruemitchai(ดร.พิพัฒน์ เหลืองนฤมิตชัย)

Chief Economist of Kiatnakin Phatra Financial Group who analyzed Thai economic indicators.

Organization

Kiatnakin Phatra Financial Group(กลุ่มธุรกิจการเงินเกียรตินาคินภัทร)

The financial group where Dr. Pipat Luengnaruemitchai serves as Chief Economist.

KKP

Abbreviation for Kiatnakin Phatra Financial Group.

Place

Asia(เอเชีย)ℹ️

The region in which Thailand's Q2 GDP growth was the lowest among major countries.

Thailand(ประเทศไทย)ℹ️

The country experiencing a rapid change in economic structure and entering new global supply chains.

China(จีน)ℹ️

The source of excess production capacity impacting the Thai petrochemical industry.