Low-income workers will be hard hit by a drop of exports

[rooster59]

Low-income workers will be hard hit by a drop of exports

 

Photo from Chanaka

 

The falling Thai exports will hurt low-income workers the most as manufacturers are expected to hire less and cut overtime employment, affecting the purchasing power of these grassroot segment.

 

The latest report from Krungsri Research Intelligence said although companies directly affected by a fall in Thai exports are multinational companies, the local workers and Thai industries in the supply chains will feel the repercussion.

 

In the first half of this year, Thai exports, representing 50 percent of Thailand’s gross domestic products, contracted 2.9 percent compared to the same period last year, versus a growth of 6.7 percent in 2018 and 9.9 percent in 2017.

 

Full story: https://www.thaipbsworld.com/low-income-workers-will-be-hard-hit-by-a-drop-of-exports/

 

-- © Copyright Thai PBS 2019-09-29

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[ExpatOilWorker]

Thailand have always had economic 3 pillars; agriculture, industry and tourism.

In the past when one was weak the other two were thriving, but this time around all three appears to be wobbling.

Edited September 28, 2019 by ExpatOilWorker

[jastheace]

nothings wobbling in Thailand. 45 baht to usd, then its wobbling

[ChipButty]

21 minutes ago, jastheace said:

nothings wobbling in Thailand. 45 baht to usd, then its wobbling

Happy Days and 65 baht to the pound 

[alant]

3 hours ago, ChipButty said:

Happy Days and 65 baht to the pound 

70+

[Isaan sailor]

Every sector of the Thai economy will suffer with this absurdly high Baht.  So why won’t Bank of Thailand take action—instead of taking in hot money inflows (for two years running, BTW)?

[sawadeeken]

Yup......... Again the same ole <deleted>...........

The HiSos and HiSo Generals............. All those making the policies......... won't hurt even a little......

Only the poor will suffer more ........... as usual......

school lunches will be cut further...... Maybe just a toothpick now.......

[Cake Monster]

NPL Loans will soar for sure in Weeks and Months to come.

Many Thais have made the same mistake that Westerners did, and borrowed cheap Money, and used Overtime to pay the Loans off.

The crime rate will also soar, as the desperate become more desperate to keep what they really cannot afford.

BOT are reluctant to take any action on the Baht due to the excessive Private Sector Loans, and SME Loans, which is around 78% of GDP if my memory is serving me right.

A perfect storm seems to be brewing  

 

[hotchilli]

11 hours ago, rooster59 said:

Low-income workers will be hard hit by a drop of exports

 

[ExpatOilWorker]

4 hours ago, Isaan sailor said:

Every sector of the Thai economy will suffer with this absurdly high Baht.  So why won’t Bank of Thailand take action—instead of taking in hot money inflows (for two years running, BTW)?

My theory is that the central bank is protecting the local bank industry. It will bring much joy if BOT lowered interest rate with a full percent point. 

The Baht will drop, tourist and exporters will love it. It will give Somchai and his 80% of GDP household debt some much needed relief. So why is BOT not doing it?

When money is cheap, banks have a harder time making money.

Just look at European banks. After feasting for years on easy QE money, now share prices are falling and they are cutting dividends. The fall of Deutsche Bank is just one example.

Down under ANZ have already been cutting dividends and as the central bank of Australia lower interest rate, they will also start to hurt.

[RichardColeman]

11 hours ago, jastheace said:

nothings wobbling in Thailand. 45 baht to usd, then its wobbling

Few farang beer bellies belie that statement

[Denim]

12 hours ago, rooster59 said:

Low-income workers will be hard hit by a drop of exports

Thank God.

 

For a minute there I was seriously worried about the rich people in Thailand having to be the helpless victims of the high baht.

 

Now that we know it's only the hoi palloi peasants that will suffer I just hope the bank sell more bonds to the Chinese so that the baht rises and the Navy can have its submarine in time for Christmas.