EU, JAPAN QE COULD BOOST THAI EXPORTS

Despite many countries launching quantitative-easing (QE) measures to stimulate their economies, the uncertain global recovery and the consequent fluctuations in exchange rates remain major negative factors that could hold back Thai exports this year, for which the Commerce Ministry has projected 4-per-cent expansion.

The ministry revealed yesterday that the value of Thailand’s exports contracted for the second year in a row in 2014, by 0.41 per cent to US$227.57 billion (Bt7.41 trillion), after a 0.32-per-cent decline in 2013.

“Last year’s decline was due mainly to the unexpected drop in oil prices and lower prices of agricultural crops. Thai exports this year could also be affected by the slow economic growth in many countries, despite their QE measures, as we are worried about fluctuating exchange rates,” said Nuntawan Sakuntanaga, director-general of the International Trade Promotion Department.

She said the ministry would closely monitor the impact of the European Union’s monetary stimulus, since it could help shore its economy and increase demand for Thai goods. However, the baht could strengthen against the euro, making Thai imports more expensive.

Nuntawan remained optimistic about export expansion this year, with the ministry setting a 4-per-cent growth target.

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