Krungthai Compass points out that exports in July 2023 were negative 6.2%, expecting exports in the second half of the year to grow at a low level.
Krungthai Compass reveals the export value in July 2023 was at 22,143.2 million USD, shrinking 6.2%YoY, being negative for the 10th consecutive month, shrinking more than the market expected -0.75%, with exports continuing to contract due to the economy. A global slowdown amid tight monetary policy has led to a decline in demand. And manufacturers reduced stocks for gold exports this month, shrinking by 53.7%, making it less expensive when gold is deducted. This month's export value was negative 5.3%YoY. Exports in the first 7 months shrank 5.5%.
As for the value of imports in July 2023, it was 24,121.0 million US dollars, a contraction of 11.1%YoY, a greater contraction compared to the previous month which shrank 10.3%YoY following the contraction of fuel products (-25.0%YoY) from The effect of the high energy price base last year and raw materials and semi-finished products (-24.4%YoY) following a contraction in exports. Meanwhile, imports of consumer goods (+6.9%YoY) and capital goods (+5.8%YoY) returned to expansion. For vehicles and transportation equipment, the expansion continued (+93.2%YoY). The trade balance in July 2023 returned to a deficit of 1,977.8 million USD. For the first 7 months, the trade balance accumulated a deficit of 8,285.3 million USD.
Krungthai COMPASS estimates that exports are likely to recover slowly due to sluggish demand in major markets. Especially the industrial product category that continued to be negative. (Export value in the first 7 months contracted 5.0%YoY) from the textile sector. pellets and plastic products Aluminum products, chemicals and rubber products, etc. reflect the demand of trading partners that have not yet recovered and are likely to continue to shrink. by the manufacturing sector of the main market countries, including the United States And Europe continued to contract in August 2023 from the Flash Manufacturing PMI indicator in the contraction zone due to the decline in new orders, causing manufacturers to reduce stocks of raw materials and finished goods. While China returned to contraction in July 2023, in line with a slowdown in China's industrial production, Krungthai COMPASS assesses that the global economy, which continues to weaken, will pressure the sector's recovery. Thai exports in the second half of the year to grow at a low level.
Source: Thai News Agency