Export growth expected to be the lowest in four years
Export growth for Thailand this year is is now being pegged at less that 1%, the lowest growth in four years.
Mr. Ath Pisarnwanich, director of the International Trade Study Centre at the University of Thai Chambers of Commerce is saying the low growth is a result of both the escalating US-China trade war and the Vietnam-EU free trade agreement. The new arrangement between Vietnam and the EU is due to take effect in Q3 this year.
But he says the ongoing trade spat between the US and China could have both positive and negative impacts on local exports.
Thai PBS reports that, for the Chinese market, he believes that Thai exports, such as rubber and rubber products, plastic pellets and chemicals, are likely to contract, but exports of fresh and processed fruits, drinks, animal feed and cleansing products are likely to expand.
With US and Thai trade, exports of computer and accessories, clothing and machinery from Thailand are expected to shrink while fresh and processed fruits, car parts, rubber and rubber products could grow, he said.
He said that the new FTA between Vietnam and the EU could have an impact up to 1%.
“Hardest hit will be exports of garments, machinery and accessories and electrical appliances.”
SOURCE: Thai PBS
