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26 Jul 2023

Thai Economy

Thai exports contracted by 5.4 percent YoY in 1H23 amid global economic slowdown; other challenging factors such as weather conditions may exert additional pressure going forward (Business Brief No.4012)


        Thai exports contracted less than expected at 6.4 percent YoY in June 2023 despite the high base of 2022. This is because exports to the Chinese market resumed growth at 4.5 percent YoY due to an increase in fruit exports, though shipments to other major markets continued to decline. Amid pressure from slowing economies among key trading partners, total export value reached USD 141 billion in 1H23, declining by 5.4 percent YoY, while imports were valued at USD 147 billion, shrinking by 3.5 percent YoY. As a result, Thailand recorded a trade deficit of USD 6,307.6 million.

        KResearch holds the view that 2H23 Thai exports will remain under pressure from an economic slowdown among trading partner countries. Other challenges that may impact Thailand’s overall exports include unfavorable weather conditions that could affect agricultural production, ongoing geopolitical tensions, and currency volatility. However, Thai shipments during 2H23 may resume growth thanks to the low base of 2H22, especially in the last quarter. KResearch thus maintains our growth forecast for Thai exports in 2023 at (-)1.2 percent YoY.

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Thai Economy