Thai exports faced a 4.7% year-on-year (YOY) decline in February 2023, marking the fifth consecutive month of contraction. The drop in exports to the US and Europe was fueled by worsening economic conditions and growing uncertainty. However, exports to China showed signs of improvement, shrinking at a slower pace.
In February, Thai imports grew 1.1% compared to the previous year, resulting in a trade deficit of $1.11 billion. This marks the 11th consecutive month of trade deficit for Thailand. Despite the continuous contraction in exports, Thai imports demonstrated sustained demand, expanding in line with the country’s economic recovery.
Exports to the US market saw a sharp 9.5% contraction, while the European market (EU28) experienced a 0.5% decline. On the other hand, exports to China contracted by only 7.9%, the lowest in 8 months, suggesting a gradual recovery of demand from China.
Thai exports may be struggling, but there are glimmers of hope. With China’s demand slowly bouncing back and new potential markets emerging, the current account should start to improve in the coming months.
Q1. Define current account.
Q2. Explain one impact of a persistent trade deficit on Thailand.
Q3. Analyse the impact of a decrease in demand for Thai exports on the Thai Baht.
Q4. Evaluate a policy the government of Thailand could use to improve the Thai current account.
Click here for the source article
President Donald Trump has reignited his trade war strategy, imposing sweeping 25% tariffs on all…
In a swift and strategic response to new U.S. tariffs, China has imposed its own…
In a bold move to accelerate economic growth, the UK government has unveiled plans to…
Greenland might not seem like a typical focus for the United States, yet it became…
BRICS, the bloc of major developing economies, has welcomed Nigeria as its newest partner country.…
THINK LIKE AN ECONOMIST! Click here for the source article