Thai shippers’ council forecasts export decline amid sluggish global demand
The Thai National Shippers’ Council (TNSC) predicts a 1% decline in exports for the current year, down from their previous estimate of a contraction between 0.5% and a 1% increase. This revision is due to ongoing sluggish global demand.
TNSC Chairman Chaichan Chareonsuk stated that Thailand’s export sector is expected to decline by -1% or more this year due to various elusive risks and enduring global, economic challenges.
“Thailand’s export climate has been readjusted to match the global economic deceleration, encompassing China, the US, and the European Union. Despite attempts to stimulate them, Thailand’s exports this year will probably fail to meet prior anticipations.”
The Kingdom of Thailand faces several challenges in the coming months, including a global economic slowdown affecting key trading partners and reducing demand. High global interest rates and rising raw material prices, particularly oil, are increasing production costs.
Changing weather patterns may also have a heavy impact on agriculture and transportation. The TNSC urges the new government to enhance international trade competitiveness by reducing costs, improving efficiency, and creating trade opportunities.
Thai exports faced their 10th consecutive monthly decline in July, mainly due to falling global commodity prices linked to the Ukraine conflict.
Tightened monetary policies and stricter lending practices in financial institutions also dampened consumer spending.
China, a significant player in the global economy, is experiencing a sluggish recovery with reduced domestic consumption due to declining business confidence, as reported by the Commerce Ministry.
In July, Thai exports dropped by 6.2% year-on-year to US$22.1 billion, while imports fell by 11.1% to US$24.1 billion, resulting in a US$1.97 billion trade deficit, reported Bangkok Post.
For the first seven months, exports decreased by 5.5% to US$163 billion, and imports fell by 4.7% to US$172 billion, leading to a US$8.28 billion trade deficit.
Follow more of The Thaiger’s latest stories on our new Facebook page HERE.
