From
Vietnam News Agency
Sat, 24 August 2024 | 8:53 GMT+7
The Bank of Thailand has recently supported government initiatives to address the flooding of the Thai market by cheap Chinese products.
Thailand has had a consistent trade deficit with China since 2001. Photo courtesy of Bangkok Post.
According to Piti Disyatat, secretary of the central bank’s monetary policy committee, Thailand has had a consistent trade deficit with China since 2001.
The price index for imported goods from China is lower than the overall index for all imported products, he said, stressing that the influx of Chinese goods has affected Thailand’s manufacturing sector at different levels depending on the industry.
According to Piti, this situation has also helped Thailand’s inflation rate remain low. While low inflation benefits consumers by lowering the cost of living, it has a negative impact on the manufacturing sector and overall competitiveness.
Locally made products such as electrical appliances, textiles and furniture are expected to continue to face pressure from an avalanche of Chinese goods. At the same time, some industries, such as the automobile industry and its suppliers, are struggling due to Thailand’s uneven economic recovery, Piti said.
Sectors experiencing a weak recovery, according to the bank, include automobiles, integrated circuits and hard disk drives. These industries account for 6% of GDP, 5% of total employment and 6% of all business activity.
Sectors where recovery is uncertain include real estate, construction and agriculture.
