Thai Exports Gain Momentum Amid US Trade Policy Uncertainty

[snoop1130]

Picture of shipping containers at Laem Chabang deep-sea port in Chon Buri province, courtesy of Bangkok Post

 

In light of US trade policy shifts, the Export-Import Bank of Thailand is optimistic about the nation’s export growth this year. President Rak Vorrakitpokatorn highlights increased demand from regions such as the EU, South Asia, and Southeast Asia, partly due to uncertainties surrounding US imports.

 

The last quarter of last year saw a boost in exports in various countries in anticipation of potential changes. Vietnam's exports jumped by 11%, China by 10%, Taiwan by 9%, and South Korea by 4%.

 

However, the fluctuating baht presents a challenge, having varied by nine baht against the dollar in 2024. The bank advises exporters to employ forward contracts and options to hedge against currency volatility, aiming for a balanced exchange rate at approximately 34.5 baht per US dollar.

 

Additionally, there is concern about cheap Chinese goods entering markets amid geopolitical tensions, potentially impacting sectors like electronics and chemicals.

 

 

Despite obstacles, the bank anticipates a 3% growth in Thai exports for the year. Meanwhile, Exim Bank is also prioritising green finance, assigning 40% of its portfolio last year to environmental projects and targeting 50% by 2027.

 

Global climate finance remains inadequate, with a significant gap between current funding levels and the US$7.4 trillion needed annually until 2030 to address climate issues. Exim Bank emphasises the increasing importance of climate finance in navigating economic and environmental challenges.

 

With these dynamics at play, Thailand’s export sector navigates a complex landscape amid a volatile global economy, reported The Thaiger.

 

 

 

 

 

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-- 2025-02-14

 

 

[Tropicalevo]

24 minutes ago, snoop1130 said:

Thai Exports Gain Momentum

 

But didn't the Finance minister say that exports would weaken unless the BOT dropped interest rates?

That comment (and others) show why the government should not get involved with the BOT.