The Ministry of Commerce is optimistic about Thailand’s economic outlook, maintaining a target of a 1-2% increase in Thai exports this year.
The ministry recently reported that customs-cleared exports fell 6.4% to 24.8 billion US dollars in June, while imports fell 10.3% to $24.7 billion, resulting in a trade surplus of $57.7 million. Agricultural and agro-industrial product exports last month fell 8.6% year on year to $4.53 billion, while industrial product exports fell 4.6% to $19.3 billion.
According to officials, the decrease in exports could be attributed to factors from Thailand’s trading partners, such as China’s slow economic recovery, Europe’s vulnerable economy, Russia’s withdrawal from the Black Sea Grain Initiative, and the drought associated with the El Nio weather phenomenon. Despite these challenges, the ministry retains an optimistic outlook for exports in the next months and predicts a gradual recovery.
Permanent Secretary for Commerce Keerati Rushchano stated that various factors present opportunities for the country to achieve export growth such as export recovery to strong potential markets such as Central Asia, Latin America, and Africa. Other factors include the favorable environment due to a weaker baht which provides exporters a competitive edge in international trade, as well as increased demand for agricultural exports.
Keerati stated that the ministry will work with the private sector to continue to organize promotional activities overseas in order to maintain export growth. He confirms that a promotional event will take place in Kunming in August, followed by activities in Nanjing and Shanghai in September.
The Thai National Shippers’ Council shared the ministry’s optimism, predicting that exports of vehicles and auto parts, electronics, and agricultural products will do well for the rest of the year. The council believes that if Thailand can maintain an average monthly export value of $24 billion for the rest of the year, exports will most likely return to positive territory by the end of 2023. (NNT)
