[China News Service] Kasikorn Research Center released a report on the 5th that both Thailand's gold export volume and export prices increased in July, resulting in a 15.2% year-on-year increase in Thailand's total export value.
According to the report, Thailand's gold export value increased by 434.1% year-on-year in July due to the ongoing tensions in the Middle East and the tendency of major central banks around the world, especially the US Federal Reserve, to cut interest rates. In the short term, gold has been well-received by the market as a hedge against risk and to maintain value. Since May, Thailand's gold exports have grown rapidly.
A report from the Office of Trade Policy and Strategy, Ministry of Commerce, revealed that Thailand's export value in July 2024 totaled 25.72 billion US dollars, an increase of 15.2% year-on-year, the highest growth rate in 28 months. Amid the recovery in global demand for Thai products, especially the significant growth in gold and electronic products exports, overall exports also expanded. Although the report did not directly mention the gold export value, it can be inferred that due to the "significant growth" in gold exports, the factors supporting overall export growth are significant.
Although Thailand's total export value increased significantly year-on-year in July However, Thai exports are still facing pressures from the slowdown in the global economy and weak purchasing power of consumers in trading partners. The manufacturing Purchasing Managers' Index (PMI) of almost all major trading partners in July and August was below 50, which will be a negative factor for Thai exports in the future.
Kasikorn Research Center believes that in the future, Thai exports will still face pressures from the reduced competitiveness of products, as well as increased risks from climate change and natural disasters that may cause losses to agricultural products. Therefore, Kasikorn Research Center still forecasts that Thailand's total export value will increase by 1.5% year-on-year in 2024. However, if the value of gold exports continues to grow significantly, the growth in the total export value throughout the year is expected to exceed the above expectations.
