Thailand Exports Seen Growing Only 1% This Year, Slowest Rate in 3 Years

The private institution forecasted on Tuesday that Thailand’s exports will grow by only 1% this year, the slowest rate of growth in three years, due to a slowdown in the economies of partner countries.

According to the UTCC Center for International Trade Studies (CITS), Thai exports in 2023 are expected to expand at the slowest rate since 2020, with a total trading value of US$295 billion.

The risk factors include a worldwide economic downturn, a worsening of the war between Russia and Ukraine, a continued spike in oil prices, inflation that is currently on the decline but remains high, rising costs, the likelihood that the US Federal Reserve will continue to raise interest rates, and supply chain disruptions resulting from the trade war between China and the United States over technology.

CITS also predicted that exports would fall by 3.4 – 1.8% in the first three months of this year, as the market condition is expected to linger from the fourth quarter of 2022, when orders slowed due to the impact of the downturn in trade partner countries.