For the current year, the University of the Thai Chamber of Commerce (UTCC) forecasts the growth of exports to be at 2%, the highest rate compared to the past four years.
Based on UTCC’s statement, the export sector in the country will grow from 0.1 to 4.1% during the year 2016.
These projections would mean that Thailand could possibly earn from US$214 to up to $222 billion. With an expected growth of 2%, the country could earn up to $218 billion which indicates in export expansion, a first in the past 4 years.
UTCC also predicts that Thailand will have greater dependence on the US market given the sustained economic recovery of the US.
Although markets in Laos, Vietnam, Myanmar, Cambodia and India remain to be top priority markets, there is also a forecasted export growth slowdown given the crisis that affected the Chinese economy.
UTCC also issued predictions that exports bound for China will continue to drop in the current year which represents a sustained decrease in exports for the past 3 years.
Possible factors affecting export growth’s slow rate is the decrease in the global prices for agricultural products, EU’s yellow carding of the fish industry in Thailand, political debacles between nations and lastly, the overall increase in activities related to terrorism all over the globe.
According to International Trade Promotion Department Director-general Malee Choklumlerd, the government will do its part in deepening ASEAN integration to increase bilateral trade and investment in neighboring countries.
Although there is a positive export growth for many industries including jewelry, automotive, electronics, construction, cosmetics and pharmaceuticals, there are notable exceptions. One particular industry which is expected to be left out is the Thai Fishery sector which has already been painted with a negative image abroad due to issues related to their illegal, unregulated and unreported activities as well as its labor problems.