PM orders close global economy, trade war watch
BANGKOK, 12th August 2019 (NNT) - Thailand’ export sector has been affected by the slowing global economy and trade war since early 2018. The Prime Minister recently urged related agencies to closely monitor the effects of the global economy on the Thai economy, before discussing the matter with economic ministers.
The Government Spokesperson Narumon Pinyosinwat, disclosed today that the Prime Minister and Minister of Defence Gen Prayut Chan-o-cha had expressed his concerns regarding the effect on Thailand of the global economic situation and trade war, and had ordered related agencies to report data on the subject for discussion at the upcoming economic ministers meeting.
Thailand’s export sector has been affected by the slowing global economy and trade war since early 2018, resulting in a drop in export value in the first five months of 2.7 percent. This reduction is however less than in other countries such as Indonesia and South Korea where their value of exports in the first five months of the year reduced by 8.7 percent and 7.4 percent respectively.
The economic effect on Thailand of the trade dispute between the U.S. and China is expected to be felt in limited areas, and to result in both negative and positive changes. Items such as electronic circuits, computers and parts, are negatively affected from the higher tax the U.S. is imposing on all countries, while products from Thailand such as farm products may perform better in the Chinese markets, as well as farm products, food and drinks, rubber and plastic, and chemicals in the U.S. markets.
Meanwhile, tensions from the trade war may attract more investment by China into Thailand, as China is currently the 7th biggest foreign direct investor in Thailand, with 5.012 billion U.S. dollars of outstanding value in 2018, estimated at a 2.12 percent rise, which is higher than the 2 percent the previous year. China has since become the second biggest foreign direct investor in Thailand in Q1 2019, with 38 project requests for investment promotion, worth 9.072 billion baht in all.
National News Bureau Of Thailand
