Shippers' council forecasts negative export growth for 2014

The International Monetary Fund has projected disappointing growth for the world economy this year, so it will be difficult to count on trade growth in many countries.

Vallop Vitanakorn, vice chairman of the council, said exports this year would not be a key economic driver because of many negative factors.

“Inevitably, Thailand will face negative export growth for the second consecutive year. Exports are expected to recover next year amid clearer signs of economic recovery in many countries, including Thailand,” he said.

The TNSC projects Thai exports will expand by 4 per cent next year, in line with growth of gross domestic product of 4.5 per cent.

Exports in 2013 dropped by 0.32 per cent year on year. According to the Commerce Ministry, export value in the first eight months of this year declined by 1.36 per cent to US$150.54 billion. 

To support the export sector, the council urged the government to come out with concrete measures to stimulate economic growth next year. The regime should accelerate state spending and government procurement, promote cross-border trade and investment, and help private enterprises to find new markets for to compensate for declines in major traditional importing nations.

Moreover, the council called for the Commerce Ministry to set up a fair logistics cost structure under its Price of Goods and Services Act to ensure fairness for all involved. Vallop said the cost of logistics had been driven upwards by special circumstances such as the Ebola outbreak in Africa, which had caused problems for Thai shippers.