Thai exports declined for the 10th consecutive month in July, falling at a larger rate than expected due to sluggish global demand and a decline in global commodity prices.
- Thai exports have declined for the 10th consecutive month in July, falling by a bigger rate than expected, due to sluggish global demand.
- The contraction in exports was far larger than expected, shrinking by 6.2% compared to analysts’ estimated dip of 0.75%.
- The decline in Thai exports is attributed to a sharp drop in global commodity prices and China’s slow recovery.
- Thailand’s Ministry of Commerce aims to achieve the challenging annual export growth target of 1% to 2% despite the difficult economic conditions.
However, the decline in Thai exports was less severe compared to other countries. The ministry will try to meet its export growth target of 1-2% for the year, but it will be challenging.
Exports in the first seven months of the year were satisfactory, but efforts will be made to improve the numbers in the remaining months. Exports of computers and parts decreased, while auto exports and rice export volumes increased. Exports to the United States rose, but exports to Southeast Asian countries, Japan, and China declined. Thailand posted a trade deficit in July, with imports also declining.
Despite the challenges faced by Thai exports, there are some positive signs on the horizon. The recent increase in auto exports and rice export volumes is encouraging and shows potential for growth in these sectors. Efforts will continue to be made to further improve these numbers and expand markets for Thai products.
To offset the decline in exports to Southeast Asian countries, Japan, and China, Thailand is actively exploring opportunities to diversify its export destinations. This includes targeting new markets in Europe, the Middle East, and Africa. By tapping into these untapped regions, Thailand can expand its customer base and reduce its overreliance on a few key trading partners.
The Ministry of Commerce is also implementing measures to support exporters and enhance their competitiveness. This includes providing financial assistance, streamlining trade processes, and offering incentives for innovation and product development. These initiatives aim to not only boost exports but also stimulate the overall economy by ensuring a favorable business environment for Thai companies.