Thai exports expected to contract in 2020
The Covid-19 virus outbreak has hit Thai exports with many experts predicting a 1 to 2 per cent contraction this year.
The Thai Chamber of Commerce (TCC) in January expected Thai exports this year at $241.894 billion, dropping by 1.7 per cent year on year.
TCC vice chairman Sanan Angubolkul explained that the estimates were based on the baht being valued at 30 to the US dollar and the Covid-19 effects.
“Business groups expected to grow negatively were agricultural products, and industrial products such as electronic goods, automotive, plastic beads, jewellery and gold,” he said.
Products whose exports were estimated to grow this year were rice, food, electrical appliances, refined oil, construction materials, rubber products, machinery and components and textiles.
“Rice exports were expected to grow only 0.1 per cent, since the appreciation of baht had lowered Thai competitiveness,” the vice chairman explained. “Meanwhile, exports of cassava products would grow at a low rate, as dermatitis and drought had lowered production in Thailand.”
Furthermore, the export of electronic products and parts would decrease from the effects of digital disruption.
“The government should promote e-commerce by hastening the opening of the ‘Top Thai Flagship Store’ on leading international e-commerce platforms,” he added.