Thailand's economy is witnessing significant growth, particularly through its export sector, as recent figures and strategic initiatives come to light. On February 25, 2023, Dr. Benjarong Suwankhiri, Deputy Managing Director of the Export-Import Bank of Thailand (EXIM Bank), met with Mr. Wuttikrai Leevirojpan, Permanent Secretary of the Ministry of Commerce, to discuss collaborative avenues aimed at enhancing the capabilities of Thai entrepreneurs and promoting Thai trade on the global stage.
This meeting emphasized initiatives to support Thai businesses by providing them with knowledge, opportunities, and financial resources to enable stable and sustainable access to trade. These efforts align with the Thai government’s broader strategy to become a hub for halal industries and to attract foreign investments, particularly through partnerships between EXIM Bank and both public and private sectors.
Supporting this ambitious agenda, Thai exports have shown remarkable resilience, with the Ministry of Commerce reporting a growth of 13.6% year-on-year for January 2023. The total export value reached $25.3 billion, continuing its upward trend for the seventh consecutive month. This growth is buoyed by the recovering economies of trade partner nations and low inflation rates.
Mr. Poonpong Naiyanapakorn, Director of the Policy and Trade Strategy Office, noted, "Exports for January have benefitted from the growing economies of our trading partners, alongside the expansion of manufacturing activities, indicating increasing consumer and production confidence globally." The International Monetary Fund (IMF) estimates global economic growth at around 3.3%, reinforcing confidence across the production and consumer sectors.
Key industries contributing to this growth include agricultural products and industrial items. Notably, exports of agricultural and agro-industrial products increased by 0.1% and 3% respectively, with standout performances from rubber products and processed chicken. Rubber exports surged by 45.5%, reflecting growing global demand. Other agricultural products, including canned seafood and pet food, also showed healthy growth rates.
Conversely, some sectors faced challenges, with exports for rice declining by 32.4% and fresh fruit seeing a decrease of 11%. The industrial exports also experienced growth of 17%, marked by exceptional performances from electronics and machinery—computer equipment exports increased by 45%, and jewelry exports rose dramatically by 148.8%.
The significant expansion of exports toward key markets such as the United States and China, with growth rates of 22.4% and 13.2% respectively, indicates strong international confidence in Thai products. Despite looming uncertainty due to shifting U.S. trade policies, Mr. Poonpong expressed optimism: “We anticipate exports to continue to grow, potentially reaching double digits, supported by the recovering global manufacturing sector.”
The Thai government projects overall export growth for 2023 at 2-3%. Factors supporting this optimistic outlook include the expected growth of the global economy driven by manufacturing expansion, easing conflicts in regions like Ukraine and the Middle East, and increasing agricultural demand reflected by rising global food prices.
Nevertheless, challenges remain on the horizon. Trade tensions, particularly with rising tariffs on Thai products and the potential for new inflation crises, pose risks to this growth. The Thai government must maintain trade balance and seek diversified markets to mitigate impacts from such uncertainties.
The recent meetings and positive economic indicators demonstrate Thailand's commitment to strengthening its trade position and enhancing the resilience of its economy through focused initiatives and international collaboration. The pathway forward seems engaged with growing optimism, yet mindful of external risks and fluctuated market conditions.