Thai exports may rise more than forecast as demand recovers - shippers

 

FILE PHOTO: A view of the port of Bangkok, Thailand May 26, 2016. REUTERS/Jorge Silva

 

BANGKOK (Reuters) - Thai exports could grow more than a forecast of 3-4% increase this year as global demand improves, but a persistently strong baht and a migrant labour shortage pose a risk, the country's shippers' council said on Tuesday.

 

Exports, a key driver of growth, will be supported by the improving economies of trade partners and global vaccine distribution, Ghanyapad Tantipipatpong, chairwoman of the Thai National Shippers' Council, told a briefing.

 

"While maintaining our forecast for now, we expect momentum to continue. February's shipments should be good," she said.

 

However, the strength of the baht and a migrant labour shortage could have a negative impact, Ghanyapad said, adding that a container shortage should last at least until the middle of the year.

 

The baht eased slightly to 30.34 per dollar on Tuesday but it has still gained 9.3% since last April.

 

In January, overall exports rose 0.35% from a year earlier. Excluding a slump in volatile gold shipments, exports otherwise rose 6.27%, customs data showed.

 

Thailand's state planning agency predicts exports will increase 5.8% this year, after a 6% decline last year.

 

(Reporting by Satawasin Staporncharnchai; Writing by Orathai Sriring; Editing by Martin Petty)

 

-- © Copyright Reuters 2021-03-02

 

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"Forecast"...give it another week or so and their forecast will be adjusted

2 hours ago, webfact said:

but a persistently strong baht and a migrant labour shortage pose a risk,

Thailand and it's daily forecasts, one has to feel sorry for them, they do try and keep trying but the end always the same.... recently spoke with one of my previous Thai suppliers, they were asking if I could help referring new customers,  they use to export 80-90% of their production, told me their export business is down by 60 -70% and absolutely no signs of improving a they are not able to compete with nearby competitors, baht over valuated VS Vietnam, they said the government is just posting misleading BS to make believers but the truth/reality it's much worse

They should take their rosier projections over to Bank of Thailand, who refuses to lower interest rates to competitive levels.  With negative interest rates Germany and other Northern European countries, combined with world class savers due to Covid restrictions, currency traders are plowing money into “emerging markets” such as Thailand.