Thai exports may shrink to lowest level in 18 years

BANGKOK, June 25 (TNA) - The global economic slump coupled with rising oil prices are expected to depress Thailand’s exports this year to shrink to their lowest level in 18 years, an academic said Thursday.

Aat Pisanwanich, director of the University of the Thai Chamber of Commerce (UTCC) Center for International Trade Studies, said Thailand’s export revenues in 2009 are expected to peak at US$146.33 billion, a contraction of 17.7-22.7 per cent since 1992.

Thailand's national economy is projected to start recovering in the fourth quarter of 2009, but will continue contracting by 3.5 per cent -- even with recovery, on the condition that the world economy recovers, Thailand’s baht currency moves at Bt33.03-34 against the dollar and world oil prices remain at US$63-65 a barrel, Mr. Aat said.

Exports in 2010 should begin improving this year as world economy exits from the current doldrums.

This year’s imports are expected to be valued at about $132.70 billion, down sharply by 25.7 per cent from last year’s performance, he said.

Nonetheless, Thailand is expected to enjoy a trade surplus of $13.63 billion in 2009.

Mr. Aat said Thailand is projected to enjoy a current account surplus of $12.96 billion this year compared to a deficit of $177 million in 2008.

"Exports wouldn’t contract sharply if exporters quickly find new markets, especially in ASEAN (the Association of Southeast Asian Nations) under the ASEAN framework cooperation. The government must also reduce double taxation, while the private sector must lower production costs and develop warehouse and transportation systems so that they become more efficient,” Mr. Aat added. (TNA)

Business News : Last Update : 16:54:20 25 June 2009 (GMT+7:00)
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