Exports seen up 2% this year but strong baht a challenge

Thailand’s exports are expected to rise 2% this year, the upper end of a previous forecast of 1% to 2% growth, but the rapidly strengthening baht could be a challenge for the rest of the year, the Thai National Shippers’ Council said on Tuesday.
The baht reached its highest level in 31 months this week trading at 32.125 against the greenback. Year-to-date, the baht has risen 5.2%, making it the region’s second best-performing currency after Malaysia’s ringgit.
“This next four months will be a challenge,” said Chaichan Chareonsuk, chairman of the council, adding the currency’s strength would hit agriculture and food shipments.
“There are no supportive factors in the final stretch, we have to fight to drive exports.”
In the first eight months of 2024, exports rose 4.2% from the same period a year earlier, after falling 1% in the whole of 2023.
Exports, a key driver of the economy, rose 7% in August, although the baht’s rise is expected to impact fourth-quarter shipments.
Strong export numbers earlier this year were helped by the weak baht, Mr Chaichan said.
The rapid appreciation of the baht was hitting exporters and tourism spending, the central bank said on Monday, and that it had managed the baht’s volatility.