Finance minister expects Thai exports, domestic spending to rise in Q2
Exports should show positive growth in the second quarter of this year despite global headwinds, while domestic consumption is expected to increase as consumer spending rises, Finance minister Arkhom Termpittayapaisith said on Wednesday.
Thai exports have been sluggish since the fourth quarter of 2021, and have declined for six consecutive months, according to data released by the Commerce Ministry yesterday. Weak global demand and delays in orders for electronic devices and electrical appliances – two major Thai exports – have contributed to the export decline. Rising global demand for Thai agricultural products has partially offset declines in other sectors, Arkhom said.
Most automobile manufacturers say production figures for exports are on track, but delivery of domestic orders is lagging due to a shortage of electronic chips used in some higher-end vehicles.
Arkhom said the stronger-than-expected recovery in tourism is boosting growth.
Government revenue collection is also exceeding targets. The amount collected in the first five years of this fiscal year – October 2022 to February 2023 – is higher than the same period in the preceding year, Arkhom said.
This revenue growth allows the government to invest in projects that will spur more economic growth, he said.
Possible obstacles to export growth include geopolitical conflict, rising oil prices and rising interest rates in the United States, Arkhom added.
