Thailand’s economy set to tumble into the abyss

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BKK empty hotelDue to the months-long street protests in Thailand and the absence of a functioning government, Thailand’s economy is increasingly deteriorating.

The country is already losing its export markets to other ASEAN members because of the Asean+3 trade agreement and the continuing political problems, according to Aat Pisanwanich, director of the Center of International Trade Studies at the University of the Thai Chamber of Commerce, the Bangkok Post reported.

Between 2007 to 2013 Thailand had lost export markets worth about $5.5 billion to other ASEAN members. During that period it also signed a trade agreement under the Asean+3 grouping that includes China, South Korea and Japan, Pisanwanich said.

The lost markets included rubber, automobiles, auto parts, transport equipment, wooden products, electrical appliances, rice, palm oil and garments – industries that make up about 50 per cent of Thailand’s exports. Thailand is losing competitiveness in the export of rice, raw palm oil and garments, he said.

If the country’s political problems continue until late this year, Thailand would lose competitiveness in the export of wooden and electrical products and the value of its export losses to other ASEAN members could rise to$7.7 billion. At present, its wooden and electrical products have “medium competitiveness,” Pisanwanich said.

Furthermore, the ongoing political conflict is also taking its toll on small and medium enterprises (SMEs). The slowing economy as a result of the crisis will hit hard 30 to 40 per cent of the two million SMEs in Thailand and the ones with less cash flow will be the first to be affected, he said.

The conflict has also hit consumer sentiment and with no political solution in sight, many SMEs have to close down their businesses after losing trading opportunities to other trade rivals.

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Reading Time: 1 minute

Due to the months-long street protests in Thailand and the absence of a functioning government, Thailand’s economy is increasingly deteriorating.

Reading Time: 1 minute

BKK empty hotelDue to the months-long street protests in Thailand and the absence of a functioning government, Thailand’s economy is increasingly deteriorating.

The country is already losing its export markets to other ASEAN members because of the Asean+3 trade agreement and the continuing political problems, according to Aat Pisanwanich, director of the Center of International Trade Studies at the University of the Thai Chamber of Commerce, the Bangkok Post reported.

Between 2007 to 2013 Thailand had lost export markets worth about $5.5 billion to other ASEAN members. During that period it also signed a trade agreement under the Asean+3 grouping that includes China, South Korea and Japan, Pisanwanich said.

The lost markets included rubber, automobiles, auto parts, transport equipment, wooden products, electrical appliances, rice, palm oil and garments – industries that make up about 50 per cent of Thailand’s exports. Thailand is losing competitiveness in the export of rice, raw palm oil and garments, he said.

If the country’s political problems continue until late this year, Thailand would lose competitiveness in the export of wooden and electrical products and the value of its export losses to other ASEAN members could rise to$7.7 billion. At present, its wooden and electrical products have “medium competitiveness,” Pisanwanich said.

Furthermore, the ongoing political conflict is also taking its toll on small and medium enterprises (SMEs). The slowing economy as a result of the crisis will hit hard 30 to 40 per cent of the two million SMEs in Thailand and the ones with less cash flow will be the first to be affected, he said.

The conflict has also hit consumer sentiment and with no political solution in sight, many SMEs have to close down their businesses after losing trading opportunities to other trade rivals.

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