The Thai National Shippers’ Council (TNSC) predicts that Thailand’s exports will rise between 6% and 8% this year, up from a previous forecast of 5% to 8% growth, thanks to a weak baht and increased global food demand.
According to TNSC Chairman Chaichan Chareonsuk, exports increased 12.7% year-on-year in the first half of 2022 and are expected to continue in the second half of the year. In the January-June period, exports of food and agricultural products increased a yearly 17%, while shipments of cars and car parts dropped 6% due to a shortage in semiconductors.
Rice exports increased by 68% year-on-year in the first half of 2022, owing to global food security concerns. He added that rice shipments could exceed 7.5 million tons this year, exceeding a previous forecast of 7 million tons.
The chairman also said export competitiveness is being aided by the Thai baht, which was at its weakest level in more than 15 years last month. He urged the Bank of Thailand to gradually raise interest rates in order to strengthen the country’s economic recovery. The central bank is meanwhile expected to begin raising its key rate from a record low of 0.5% next week in order to contain inflation. (NNT)