The Thai export sector is expected to face challenges in the first half of 2023 amid economic uncertainty and inflationary pressures. However, the Ministry of Commerce anticipates a recovery in the sector in the latter half of the year. Department of International Trade Promotion Director-General Phusit Ratanakul Sereroengrit stated that the outbound shipments from Thailand are expected to contract in the first and second quarters as importers still have large stockpiles. Nevertheless, exports are expected to bounce back in the second half of the year.
According to the Ministry’s data, the value of Thai exports declined for the fifth consecutive month in February, reflecting a fall of 4.6% to $42.6 billion for the first two months of 2023. The export sector is hampered by factors such as high inflation in many countries, which is affecting consumer purchasing power, and the global economic slowdown, which is decreasing demand for products. However, agricultural and agro-industrial product exports increased by 3.6% year-on-year in February to $3.9 billion, while industrial product exports fell for a fifth consecutive month in February, decreasing by 6.2% to $17.6 billion.
The Thai government maintains its export growth target of 1-2% for the year, compared to the 5.5% increase recorded in 2022. Despite the challenges faced by the Thai export sector, the Commerce Ministry remains optimistic that the industry will recover later in the year and continue to contribute to the country’s economic growth.
