Thailand may see exports shrink by 15% in 2020
Thailand’s exports may shrink by 15% for 2020 as the COVID-19 situation continues to worsen and affect global demand, a Thai shipping association said on Tuesday, adding that a stubbornly strong Baht adds further to the pressure.
Thailand’s exports fell by 15.2% in the second quarter year-on-year and by 7.1% from January to June.
According to the chairwoman of the National Shippers’ Council Ghanyapad Tantipipatpong, outlook for exports in the third quarter will be similar to the second quarter as the global economy struggle to recover from the pandemic.
While the group maintains its 2020 export target to be below 10%, Ghanyapad said that there are more negative factors than positive ones, which make it possible for exports to contract further by 15%.
This would be the sharpest decline since the commerce ministry started compiling records on exports in 1992 and compares with a 14.3% drop in 2009, during the global financial crisis.
Furthermore, the Baht traded at month a high of 31.05 per Dollar at 03:10 AM ET 0710 GMT, making the Thai currency much stronger than what is necessary to help the growth in exports, Ghanyapad said.