BANGKOK, 30 September 2013 – The Federation of Thai Industries (FTI) forecasts that this year’s Thai export growth rate might be just 1-2% since exports in the first eight months of 2013 expanded only 1.03%. None of the export products is likely to record significant growth at present.
FTI Secretary-General Sommart Khunset said Thailand’s 2013 export growth would definitely be below the Commerce Ministry’s forecast of 4%. It was still unpredictable which products would drive this year’s export growth as major markets, such as the U.S., Europe, Japan and China, had not yet fully recovered. He indicated that most Thai exporters were still suffering from the minimum wage hike and increasing costs of production.
The Commerce Ministry’s export growth target for the year 2014 of 5-7% was also too high, Mr Sommart said. The private sector reportedly wants the government to urgently find new markets for them, especially in ASEAN and India, instead of depending on exports to major markets like the U.S., Japan and China.
According to the FTI executive, the obstacles which will prevent the 2013 export growth from hitting its targets include the global economic slowdown, Thailand’s higher costs of production compared with other countries and non-tariff trade barriers.
