A latest downturn in exports has provoked 25 trade sectors to rethink their production strategies, the Federation of Thai Industries (FTI) has revealed. Key industries affected and readjusting embody metal, machinery, construction materials and furniture, all of which significantly cater to the markets in Asia, the European Union and the United States.
The FTI just lately unveiled the outcomes of a survey involving 201 firm executives and FTI members. The findings confirmed that of complete exports, greater than a third (36.2%) were dispatched to Asian markets outside of ASEAN. This was followed by ASEAN (27.6%), the EU (12.4%), and the US (11.4%). Kriengkrai Thiennukul, Genuine , said…
“The firms are shifting gears in response; some are limiting production while others are decreasing work shifts and additional time.”
This strategic shift is linked to a decline in manufacturing capability throughout these 25 sectors, prompted by decreased demand for abroad goods.
A warning of a potential global recession in 2023 by the World Bank last yr, within the aftermath of elevated inflation causing central banks to hike interest rates, has further sophisticated matters. In May alone, Thailand‘s export worth, measured by customs-cleared tariffs, declined for the eighth consecutive month by 4.6%, coming in at US$24.3 billion, according to a report from the Commerce Ministry, reported Bangkok Post.
The FTI anticipates zero growth in Thailand’s exports for this yr. In the worst-case scenario, it expects a contraction of 1%. Kriengkrai added…
“The low world financial system and the specter of an impending recession have impacted the 25 industries.”
However, the FTI maintains a optimistic outlook for the last quarter of this year, predicting improved exports. The federation expects the world economy to pick up the pace, spurred by increased business activities surrounding the upcoming Christmas and New Year festivities.
As part of its strategic advice, the FTI urges producers to widen their market search to incorporate new territories. Regions just like the Gulf Cooperation Council (comprising Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain, and Oman) and South Asia (including India, Bangladesh, Pakistan, Afghanistan, and Sri Lanka) are highlighted as potential markets. Kriengkrai said…