Deposits
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Updated the key Industry Indicator: Ceramic Tiles in each industry.By Puttachard Lunkam
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The construction materials industry will enjoy an improving outlook over 2023 to 2025 thanks to better conditions on both domestic and international markets. (i) Overall domestic expenditure on construction is forecast to expand by 3.0-3.5% annually, lifted by a combination of an acceleration in government investment on megaprojects connected to the Eastern Economic Corridor (EEC) (ii) With the COVID-19 pandemic now receding, regional economies are rebounding, and this will support increased spending on infrastructure and real estate projects
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Overall demand for construction materials is expected to recover gradually over the 2026–2028 period. In particular, demand for structural materials will be supported by new investment projects and large-scale infrastructure developments
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Over the three years from 2021 to 2023, manufacturers and distributors of construction materials will see improving business conditions thanks to rising demand on both domestic and export markets. This outlook will be helped by two factors. (i) Overall expenditure on construction within Thailand is expected to grow by an annual average of 4.9-5.2%. This will come from stronger government spending on infrastructure megaprojects, especially in the Eastern Economic Corridor (EEC), and on expansions and upgrades to the national road and rail networks, as well as from a rebound in the economy that will then boost private-sector construction. (ii) As the COVID-19 crisis abates, regional economies (in particular in the CLV countries, the main export target for Thai players) will return to growth and this will then feed into greater activity in construction and real estate markets, while in addition, governments in the region are also spending more heavily on infrastructure.
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It is expected that in 2020 the revenue of construction materials is likely to shrink from the impact of the COVID-19 crisis in 2019.
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The Thailand Industry Outlook report evaluates the attractiveness of selected Thai industries to support credit evaluation for the bank’s clients over the next 3 years (2021-2023). The report considers a range of factors that will affect each industry over this timeframe. These include the broad competitive environment (e.g. trends in trade and the global economy, structural changes occurring at global level, and economic outlook for Thailand), as well as sector-specific variables (e.g. industry structure, Thai industrial competitiveness, and ongoing regulatory changes). We look at the players’ ability to cope with uncertainties, generate revenues, and service debt.
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The Thailand Industry Outlook report evaluates the attractiveness of selected Thai industries to support credit evaluation for the bank’s clients over the next 3 years (2021-2023). The report considers a range of factors that will affect each industry over this timeframe. These include the broad competitive environment (e.g. trends in trade and the global economy, structural changes occurring at global level, and economic outlook for Thailand), as well as sector-specific variables (e.g. industry structure, Thai industrial competitiveness, and ongoing regulatory changes). We look at the players’ ability to cope with uncertainties, generate revenues, and service debt.
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The Thailand Industry Outlook over the next 3 years (2023-2025) covers a range of factors that will have impacts on industries. Those factors include challenges and opportunities to represent the attractiveness of each industry that relies on the macroeconomic environment and sector-specific factors.
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Given this, manufacturers and distributors of construction materials will have to endure a poor outlook for 2024, but as demand is expected to record growth in 2025 and 2026,
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