Thailand’s Exports Likely to See Slower Growth in 2023 as Global Recession Looms

Thailand exports are likely to see a slower pace of growth in 2023 amid gloomy global economic outlook, coupled with rising oil prices, and an appreciating baht, the Thai National Shippers’ Council warned on Tuesday.

The national shippers’ group forecasts that Thailand’s exports will grow by 2-3% in 2023, due to the increased risk of a global recession, and the Purchasing Managers’ Index (PMI) in several nations, including the United States, has dropped in recent months.

Chaichan Chareonsuk, the chairman of the Thai National Shippers’ Council, suggested continuing to monitor China’s further loosening of Covid-19 restrictions, as this would determine the course of tourism and travel.

The outlook for 2022 exports is expected to grow by 7-8%, with the likelihood that exports will slow down in the fourth quarter due to three major factors: 1. the manufacturing sector in the United States, the European Union, and China is weakening, 2. the baht began to appreciate again in November and December, and 3. oil prices remain high.