Despite signs of a recovery in exports, the value of Thailand’s exports has contracted from the previous year. According to the Thai National Shippers’ Council (TNSC), export growth is expected to range between 0 and 1 percent this year. In order to sustain the competitiveness of manufacturers, the TNSC is urging the government to keep energy prices at an appropriate level.
Speaking about Thailand’s international trade in March 2023, TNSC Chairman Chaichan Chareonsuk revealed that exports totaled $27.654 billion, representing a 4.2% contraction from the same period last year. However, if exports are valued in Thai baht, the figure would show a 2.2% expansion from the same period in the previous year. Meanwhile, imports amounted to $24.935 billion, representing a 7.1% contraction from the same month in 2022. When valued in Thai baht, imports contracted by 1.0%. Based on these figures, Thailand experienced a trade surplus in March.
Looking at the first quarter of 2023, Thailand exported a total of $70.280 billion, a 4.5% contraction compared to the same period last year. However, when valued in Thai baht, exports contracted by 1.1%. Imports amounted to $73.324 billion, a 0.5% contraction compared to the first quarter of 2022. But when valued in Thai baht, imports expanded by 2.9%. Based on these figures, Thailand experienced a trade deficit in the first quarter of 2023.
Despite the contraction in exports, Mr. Chaichan noted that March’s figures were better than expected and suggested that exporters should be able to pull through the remaining nine months of the year. However, the TNSC predicts that overall exports in 2023 will only grow by 0 to 1 percent, citing the global economy and energy prices as major risk factors. To minimize impacts on the manufacturing sector and remain competitive, Mr. Chaichan suggested that the state sector manages the FT rate applied to electricity charges.
