Thai export growth slashed to 1 %
The Thai National Shippers’ Council (TNSC) has slashed its export growth forecast for this year to 1 per cent due to the prolonged US-China trade war, and has urged the Commerce Ministry to set up a war room to follow up on the situation and swiftly find solutions.
TNSC had earlier estimated Thai exports to expand 3 per cent this year.
Council chairperson Ghanyapad Tantipipatpong said TNSC expected the baht at 33 to the dollar, while operators are expected to make adjustments to avoid impact from the trade war by finding new markets with help from the ministry’s “Speed and Strategy” policy.
Global risks remains with a likely economic slowdown, which could affect purchasing power, the ongoing trade war and the fourth round of retaliatory tariffs as well as US trade measures affecting countries like Mexico, Iran, North Korea, and India.
The trade war has affected decision-making on investments or relocation of manufacturing bases.
These factors have made the TNSC revise down Thai export growth to only 1 per cent for the whole year, Ghanyapad said.
She said that under its strategy to promote international trade, TNSC has proposed that the new government open new markets and negotiate free trade agreements with major trading-partner countries, hold trade missions and Thailand exhibitions in strategic markets, and cash in on being the Asean chair this year.
The council also urged the new government to accelerate negotiations for a free trade agreement between Thailand and the European Union, the Comprehensive and Progressive Agreement of Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership.
In April, Thai exports dropped by 2.6 per cent year on year to US$18.56 billion, while imports edged down 0.7 per cent to $20.01 billion. As a result, Thailand faced a trade deficit of $1.46 billion in the month.
In the first four months of this year, Thai exports contracted 1.9 per cent year on year to $80.54 billion, falling 1.9 per cent to Bt2.54 billion in baht terms.
Imports shrank 1.1 per cent to $79.99 billion, dropping 0.9 per cent to Bt2.56 billion in baht terms. Thus, the country had a trade surplus of $549.5 million, but a deficit of Bt21.51 billion in baht terms.
In April, Thai shipments of the agricultural and agro-industry rose 3.9 per cent year on year, led by processed and frozen, chilled, fresh vegetable and fruit, processed, frozen and chilled chicken, and beverages.
Thai shipments of manufacturing products contracted 4.2 per cent year on year, led by automobiles and components, gold, computers, steel and steel products.
