Private sector wants new government to quickly take up the reins

The private sector also wants the Bank of Thailand (BOT) to be careful in adjusting the interest rates so that they don’t become a burden on small and medium-sized enterprises (SMEs). In keeping with global trends and inflation, the BOT has been consistently hiking the key interest rate, which is now at 2%. 

Additionally, the private sector seeks assistance from the government in managing electricity costs appropriately to minimise the impact on the increased production costs and the competitiveness of important trading partners, Chaichan said.

As of June, the council is projecting a growth target of 0-1 per cent for exports in 2023. However, there are several risk factors that could hinder this goal, such as delays in the formation of a new government, which could impact export plans in the second half of the year.

Moreover, the global economy remains uncertain due to geopolitical conflicts, affecting all sectors including finance, manufacturing, exports, raw materials, and energy, Chaichan said. Global interest rates remain high, leading to economic slowdown and increasing borrowing costs for entrepreneurs.

Production costs too remain high, including electricity expenses, which affect Thailand's price competitiveness and the volume of stock in the country's major trading partners, he added. Weather changes caused by El Niño may also affect the agricultural sector in Thailand.

In April, Thailand's export value was $21.723 billion, contracting 7.6% compared to the same month in the previous year. In baht terms, the exports were valued at 737.78 billion, a 5.6% contraction. Excluding gold, oil, and weaponry, export value in April contracted by 6.8%.

Meanwhile, imports amounted to $23.195 billion, a 7.3% contraction. In baht terms, it amounted to 797.37 billion, contracting 5.4%. As a result, Thailand reported a trade deficit in April of $1.471 billion (59.58 billion baht).

The overall exports in the first four months (January to April), compared to the same period in the previous year, amounted to $92 billion, a 5.2% contraction, while in baht terms it amounted to 3.11 trillion, contracting 2.2%. Excluding gold, oil, and weaponry, the export contraction during this period was 2.3%.

Meanwhile, imports fell 2.2% to $96.51 million, down 2.2%, amounting to 3.305 trillion baht, expanding 0.8%. As a result, Thailand's trade deficit from January to April was $4.516 billion (194.78 billion baht).