Thailand’s Exports Contract More than Expected in December due to Strong baht Currency

(CTN News) – Thailand’s exports decreased more than anticipated in December, according to the Ministry of Commerce.

Due to a downturn in the global economy and a strong baht currency, which reduces trade competitiveness, the ministry also projects moderate growth for 2023.

Thailand’s exports fell 14.6% in December compared to a year earlier, worse than the 11.5% decline predicted in a Reuters survey.

Exports to the United States dipped 3.9% year over year in December, while exports to Southeast Asia plummeted 19.0%. Exports to China decreased by 20.8% over the previous year.

In contrast to the forecasted deficit of 1.06 billion US dollars, Thailand’s trade deficit in December was 1.03 billion US dollars.

Compared to a year earlier, imports dropped by 12% in December, vs an expected 8% decline.

Thailand’s export value did, however, surpass the ministry’s goal of a 4% rise and reach a new high of 287 billion dollars thanks to 5.5% growth.

In 2022, imports increased by 13.6%, and there was a 16.1 billion dollar trade deficit.

The government is aiming for growth of only 1% to 2% this year, according to Minister of Commerce Jurin Laksanawisit, a prognosis that was also shared by the private sector.

He listed several detrimental aspects, including the weakening economies of Thailand’s main trading partners. He also emphasized how the appreciation of the baht is hurting export competitiveness while rising oil prices have increased expenses.

The lower dollar and China’s earlier-than-expected reopening have helped the baht gain 5.5% versus the dollar this year, making it Asia’s best-performing currency. (NNT)

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