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Thai Exports Set to Surge in Second Half of 2023, Boosted by Market Expansion Initiatives
(CTN News) – Thai exports are anticipated to witness a significant surge in the second half of 2023, driven by a rebounding global economy, according to the nation’s Commerce Ministry.
The current competitive baht exchange rate and planned market expansion initiatives are expected to play a crucial role in boosting trade. The ministry focuses on expanding into regions such as Yunnan Province and Nanning City in China, particularly focusing on food and fruit exports.
The Thai Commerce Ministry is shifting its focus towards the Commonwealth of Independent States and neighboring nations to identify potential new markets.
Positive Shifts in Global Economy Expected to Boost Thai Exports
The pause in interest rate increases by the US Federal Reserve is seen as a positive market shift that could alleviate pressure on consumer spending and investment, consequently boosting Thai exports.
Additionally, the possibility of drought in several countries positions Thailand favorably to capitalize on its robust agricultural exports.
While the Commerce Secretary, Keerati Rushchano, maintains a positive outlook, he acknowledges various risk factors that could negatively impact the Thai export sector.
These risks include economic downturns in trading partner countries, particularly in the EU, unpredictable weather conditions affecting agricultural output, and fluctuations in interest and exchange rates.
Furthermore, concerns are raised regarding the trading policies of major partners like China and its self-reliance policy. This introduces a degree of uncertainty and poses challenges to Thai exports.
Thailand Aims to Fulfill Annual Export Target Amidst Weakening Baht
Recent data from the ministry indicates a continuing dip in exports for eight consecutive months as of May. Thai exports experienced a decline of 4.6%, amounting to US$24.3 billion, while imports shrank by 3.4%, resulting in a trade deficit.
In May, Thai exports of agricultural and agro-industrial products recorded a significant year-on-year plunge of 16.3%, reaching just US$4.44 billion. However, industrial product exports witnessed a slight increase of 1.5%, valued at US$19.0 billion.
Chaichan Chareonsuk, Chairman of the Thai National Shippers’ Council, states that if Thailand can sustain exports at a monthly value of US$24.4 billion for the remainder of the year, it will achieve its annual target of 0% growth.
He also highlights that the current weakening of the baht against the US dollar, combined with collaboration between the private sector and the government, can drive projected Thai export growth of 1 to 2% by the end of the year.
