[Asia Times] Thai Imports at Record Low, Worry Brewing

Trade conditions worsen, exporters panic while domestic producers celebrate

 

With the further depreciation of the Thai baht, Thailand’s quantity demanded for imports has declined 

due to a diminishing external value of the Baht (and hence more expensive foreign goods for Thai locals). 

This has led to a fall in export demand for trade partners like Japan and Indonesia, with this impact being 

the worst in South Korea. In the past month, South Korean exports of electronics, manufacturing materials, 

and even basic construction materials like wood and cement have declined by 10.2% as these 

export-oriented industries see their long-term profitability being threatened. Smaller enterprises have been 

pushed to the brink of insolvency, with a few companies barely breaking even. 

Thai manufacturers are ecstatic about such uncompetitive markets, however the general consumer does 

seem to think differently. Prices are slowly rising as well, with the rate of inflation increasing from 5.81% 

in late 1996 to forecasted rates of 7.69% in early 1998. Although worrying, such inflation is still at a

manageable amount as per the Thai Central Bank.