Thailand exports slump

I've been hanging out for White Desire to post on this topic as he's such a lover of the BBC and it will surely (?) have an impact on the Thai exchange rate. However he hasn't done so, and I guess I'll have to step up.

"Thailand's exports slumped by more than a quarter in May - a record fall - as demand for Thai goods overseas continued to drop during the downturn. Exports fell by 26.6% compared with a year earlier, to $11.7bn (┬г7.1bn). Imports dropped by 34.7% to $9.3bn. "Exports to key markets were all lower due to weak demand and intensifying competition," the government said. The Thai economy, which is suffering from its worst recession in decades, is heavily dependent on exports. And analysts believe the country's exporters, which account for more than 60% of Thailand's entire economic activity, will continue to suffer. "It is less likely there will be a strong rebound in Thai exports in the near future as demand for imports of raw materials has not picked up yet," said Suara Wilaipich at Standard Chartered Bank. The Asian economy has been hit hard by the global economic downturn but also by political unrest at the end of 2008."

http://news.bbc.co.uk/2/hi/business/8108859.stm

Curious: It doesn't take an economist to work out that exports have slumped in Thailand nor other activities for that matter. If it was "fresh", then probably I'd have a say on it, but it was predictable.

[giggsy]

de-valuing the baht is on the way :thumbleft: ┬г1 will equal B200 hooray :reindeer:

If it was "fresh", then probably I'd have a say on it, but it was predictable.It's never stopped you before.

de-valuing the baht is on the way :thumbleft: ┬г1 will equal B200 hooray :reindeer:

How do you predict they will do that, since the currency is free-floating?

[giggsy]

de-valuing the baht is on the way :thumbleft: ┬г1 will equal B200 hooray :reindeer:

How do you predict they will do that, since the currency is free-floating?

I've absolutly no idea but I have a go on the lottery ever week so dream of winning the lottery or B200 to ┬г1 seems a nice if unattainable dream to me..
Jokes are funny because of the element of truth contained in them. In dreams, we may access our own sarcasm or humor about our circumstances. However, we may have characters in our dreams that make jokes that we do not find at all amusing. These may reflect our own ambivalence or a need to lighten up because we are not enjoying ourselves as we could.

[allieb]

Three years ago I bought a new Fuji aircondition, made in Thailand. It was about 10 % more expensive than its comperitors made in all sorts of different places. It is a very good quiet machine. About 3 months ago my entrance hall AC needed replacing so I went back to the same shop. Now the made in Thailand Fuji is a big 30% more expensive than its competitors, Shop keeper told me he can't sell them any more as too many other good cheaper brands available.

Thailand has priced itself out of the market in many things, all to do with the exchange rate. Why don't they unfloat the Baht and devalue it ? Iceland did and its recovering nicely

"Concern over the direction of the baht has also been building, with businesses asking the central bank to push the currency weaker to help support exports. Dr Tarisa (central bank governor), however, maintains the long-held stance that intervention is only to smooth out volatility, not change the direction of the currency. Most analysts agree the baht is set to appreciate this year, thanks to hefty current account surpluses and growing concern about the value of the dollar. Dr Tarisa said intervention was no cure and exacted its own cost on the economy."

http://www.bangkokpost.com/business/eco ... sy-answers (http://www.bangkokpost.com/business/economics/18923/no-easy-answers)

[Beachlover]

Ah well... the Thais are going to need to work harder.

I suppose this is good for all you expats... things will get cheaper in Thailand.