Thai exports lowest in 4 years

[thaihome]

How do low global oil prices have a negative effect on Thai exports? ( no...I'm not being negative, I just want to know)

One of the factors being blamed for the worldwide slow down in demand for consumer goods is the low oil price (ironic that high prices were previously blamed for the same thing). Almost half of Thailand exports are manufactured consumers goods so if indeed low oil prices are to blame for lower worldwide demand, then low oil prices are indeed the issue for Thailand.

What is not mentioned in the article is the highly favorable impact low oil prices are likely having to Thailand's balance of trade as it imports some 1 million barrels a day, mostly in support of the consumer good manufacturing and transportation.

TH

[timendres]

"The vulnerable global economy played a role..." - really?

Seems like imports in all major countries have rebounded nicely since 2009 and are mostly noise on the charts over the past 5 years. And cheaper oil should be making transport a backwind.

"It could be assumed that Thailand's competitiveness did not drop..." - really?

So what could possibly explain the drop in exports, if imports in the major economies have not dropped, and exchange rates favor exports from Thailand?

"...do marketing for the service sector more..." - hmmm.

It will be difficult to compete with those that are more skilled, and making it more difficult for those skilled workers to come here and setup shop isn't helping matters.

I wish you the best of luck Thailand, but something tells me that policy and management at some level is coming up short.