Thai competitiveness dropping due to stronger baht, ailing global economy

[webfact]

Thai competitiveness dropping due to stronger baht, ailing global economy

By THE NATION

 

 

The global slowdown and continued appreciation of the baht have hurt Thailand’s competitive edge in the world market, said Poj Aramwattananont, vice chair of Thailand’s Board of Trade.

 

He said these factors have affected the country’s export sector, which is consequently affecting the employment situation. 

 

The global slowdown has resulted in a drop in orders from foreign customers, while the baht has continued rising against the currencies of Thailand’s trading partners, he added. 

 

Supant Mongkolsuthree, chairman of the Federation of Thai Industries (FTI), said the government’s “Eat, Shop, Spend” economic stimulus may help spur domestic consumption, which could offset the impact of the decline in exports. 

 

FTI vice chairman Suchart Chantaranakaracha said it is still unclear whether the ailing global economy will affect jobs in Thailand, where the unemployment rate is low at 0.9 per cent. It is also difficult to predict if the rate of unemployment will rise next year.

 

Source: https://www.nationthailand.com/business/30377745

 

-- © Copyright The Nation Thailand 2019-10-28

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[AlexRich]

My absence from the country has had a huge impact ... they'll need at least three Indians and a couple of Chinese to make up the difference!

 

????

[sanemax]

8 minutes ago, AlexRich said:

My absence from the country has had a huge impact ... they'll need at least three Indians and a couple of Chinese to make up the difference!

 

????

You just want to feel wanted and needed 

[AlexRich]

Just now, sanemax said:

You just want to feel wanted and needed 

 

Nah ... I'm not that bothered as my absence has coincided with a very poor GBP conversion rate, I'm in Euro land and the hit is not too bad. Going forward I doubt I'll be in Thailand any more than three months per annum given the tourist visa crack down. 

 

 

[Cadbury]

20 minutes ago, webfact said:

Thai competitiveness dropping due to stronger baht, ailing global economy

There seems to be a number of negative domestic and global factors coming together to make a perfect economic storm for Thailand.

The amateurish financial management of military economists hasn't helped. Their gimmicky cash splash “Eat, Shop, Spend" stimulus is an example. 

Both Rabobank and Fitch have downgraded global growth to an 8 year low of 2.5%. Thailand is helpless to do anything about that.

But the real killer is the high baht and experts seem to think virtually nothing can be done to stop it's growth in value. 

Good economic management is desperately needed. The usual junta style knee jerk reactionary responses to every little economic hiccup is not going to cut it. 

 

[30la]

Why don't you tell the truth? Thai export has been down for years, what we see now is a further increase in the collapse due to Baht speculation of some rich people!

[hotchilli]

6 hours ago, webfact said:

Supant Mongkolsuthree, chairman of the Federation of Thai Industries (FTI), said the government’s “Eat, Shop, Spend” economic stimulus may help spur domestic consumption, which could offset the impact of the decline in exports.

I'm sure the affected workers who are losing their jobs because of the export market failing will be appreciative of the "eta, shop, spend stimulus" !

[Scot123]

I just shake my head. Are they really that thick? In the past few years foreign investment poored out of Thailand very large factory's are closing, exports are crashing (hidden slightly by gold and gems streaming out of the country) tourism $ are down as seen by ghost towns starting to form in tourist locations, expats having money stolen by banks and insurance companies and as a greedy gouging military government looks to scew ever Baht from the people by raising taxes on all necessities of life. Blatant grab now for middle class money with an attitude of "they can afford it!" But everything is OK and no one can see the emperor isn't wearing clothes..... 

[Cake Monster]

The lack of " Competitiveness " has also been largely due to the excessive Holidays and working conditions of Thai workers over other SE Asia Nations.

[leeneeds]

It hurts every time I change earnings into baht, looking more diligently for the best rate, has become some what a chore now, as the exchange rate has dropped so much, bringing home half  the amount and leaving half for a better rate, never thought I would be educated on money markets, 

[zydeco]

13 hours ago, webfact said:

Supant Mongkolsuthree, chairman of the Federation of Thai Industries (FTI), said the government’s “Eat, Shop, Spend” economic stimulus may help spur domestic consumption, which could offset the impact of the decline in exports. 

Of course! Robbing Peter to pay Paul is the perfect answer!