Thai exports expected to grow over 6% in 2018

BANGKOK, January 17 (TNA) - The Center for International Trade Studies (CITS) of Bangkok-based University of the Thai Chamber of Commerce has forecast that the country's exports should grow by 6.3 per cent year-on-year on average this year despite the appreciation of the Thai baht. CITS Director Ath Pisalvanich told journalists on January 16 that the forecast, if realized, should earn the Thai Kingdom from exports of about 252.56 billion US dollars this year. Ath attributed the further expanding Thai exports to the recovering world economy and improving political relations between Thailand and the European Union (EU), as well as a positive impact from the ASEAN-China Free Trade Agreement (ACFTA) in terms of rising Thai exports to the immense Chinese market and vice versa. Ath cautioned, however, if the Thai baht appreciated at a faster pace than that of other currencies in the ASEAN Economic Community (AEC), resulting in a slowdown in Thai exports of natural rubber and rubber products to China consequently, the country's exports should grow by only 4 per cent year-on-year in 2018. The CITS chief pointed out that the weakening US dollar, after a recent US key interest rate increase was lower than the market expectation, has caused the appreciation of the Thai baht and other Asian currencies. Besides, increased capital inflows since last year have strengthened the Thai currency, probably to 31.80 baht a US dollar later this year, becoming the strongest Thai baht in five years. According to the CITS chief, other risk factors against growing Thai exports include impacts from rising wages in the country, as well as US trade deficits and trade protectionist measures of Thailand's trading partners although the Kingdom is likely to regain the trade privilege under the US Generalized System of Preference (GSP) within the first quarter of this year for over 2,000 items of exports, thanks to the country's improved status on the intellectual property protection recently, from Washington's priority watch list (PWL) to watch list (WL). The CITS director, meanwhile, urged authorities concerned to contain the strengthening Thai baht to be in a comparable pace with other currencies in the region to smoothen and support expanding Thai exports in 2018. (TNA)