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27 Jun 2023

Thai Economy

Thai exports continued to shrink in May 2023, but at a slower pace of 4.6% YoY, supported chiefly by exports of industrial products amid limited benefit from Chinese economic recovery (Business Brief No.4009)


        Thailand’s outward trade contracted for the eighth consecutive month of 4.6 percent YoY in May 2023. The shrinkage, however, was at a slower rate compared to that reported for April 2023, supported primarily by increased exports of industrial products, including automobiles and electronics, to the US and Eurozone. Meanwhile, shipments to China reported a steep contraction of 24.0 percent YoY in line with signals that the Chinese economy has begun to lose its recovery momentum.  

        KResearch is of the view that the slowing and uncertain global economy, which is set to dampen global demand, will pressure the overall Thai exports ahead, while there may be limited benefit from the Chinese economy as evidenced by the steep contraction in Thai exports to China during May 2023. Thai shipments will also be threatened by other downside risks, including unfavorable weather for farming, ongoing geopolitical issues and forex market volatility. However, as the low base of 2H22 may help bolster Thai exports somewhat during 2H23, KResearch maintains our growth forecast for Thai exports in 2023 at (-)1.2 percent.  

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Thai Economy