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25 Aug 2023

Thai Economy

Slowing global economy further pressured Thai exports to contract faster at 6.2% YoY in July 2023 (Business Brief No.4015 Full Ed.)

คะแนนเฉลี่ย

        The global economic downturn further pressured Thailand’s outward trade to shrink steeper than prior estimates at 6.2 percent YoY in July 2023. The figure represents a contraction for ten straight months due to the sagging demand for Thai products from almost all trade partners, except the US, where Thai exports grew slightly. Meanwhile, Thai fruit exports to China increased at a slower pace in July 2023, after recording an accelerated growth in June 2023, which remained insufficient to support the overall Thai exports to China to grow in July 2023. As a result, the overall Thai shipments during 7M23 continued to shrink at 5.5 percent YoY. Thai imports also contracted at 11.1 percent YoY. Thailand, therefore, continued to sustain a trade deficit of USD8,285.3 million.
        Looking into the remainder of 2023, KResearch is of the view that although Thai exports will be supported by the relatively low base of 2022, the overall shipments will likely be pressured by the slowing economies of Thailand’s major trade partners, particularly China, which has seen slower-than-expected economic growth. Other factors that may threaten Thai exports include ongoing geopolitical issues, persistent drought that may dent agricultural outputs and forex volatility. Given this, KResearch expects that the total Thai exports in 2023 may shrink further from our current estimate of (-) 1.2 percent.

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Thai Economy