Thai exports seen rising more than 7% y/y in Q3

BANGKOK: Thailand's exports are expected to rise more than 7% in the third quarter from a year earlier and 6% in the final quarter of the year, lifted by higher global demand and a weaker baht, the country's shippers' council said on Tuesday.

Exports, a key driver of Thai growth, could grow 10% this year, the group told a briefing, citing vaccinations for factory workers as the main factor.

"It's the vaccine that will help exports rise 10% this year. If that's not managed well, manufacturing will be affected," said Chaichan Chareonsuk, chairman of the Thai National Shippers' Council.

Thailand started its mass vaccination drive last month but has faced limited vaccine supply.

Separately, the Federation of Thai Industries' (FTI) sentiment index dropped for a third straight month in June, hitting a one-year low on concerns about the country's coronavirus outbreak, it said in a statement.

The Southeast Asian nation's latest outbreak has seen the most infections and deaths, and the FTI said that had slowed economic activity amid already sluggish domestic demand.

Both business groups urged the government to tackle worker shortages at labour intensive industries such as food and rubber, amid restrictions on the movement of migrant workers.

The shippers' council, however, said the weakening of the baht was a boost exports. The baht has depreciated by 6.7% against the dollar so far this year, becoming Asia's second worst performing currency.

In the first five months of 2021, shipments rose 10.78% from a year earlier, customs data showed.