BANGKOK, Oct 1 Reuters Thailand39;s exports are expected to rise 2 this year, the upper end of a previous forecast of 1 to 2 growth, but the rapidly strengthening baht could be a challenge for the rest of the year, the Thai National Shippers39; Council said on Tuesday.
The baht reached its highest level in 31 months this week trading at 32.125 against the greenback. Yeartodate, the baht has risen 5.2, making it the region39;s second bestperforming currency after Malaysia39;s ringgit.
The rapid appreciation of the baht was hitting exporters and tourism spending, the central bank said on Monday, and that it had managed the baht39;s volatility.
The baht39;s appreciation is too fast when compared with our partners and competitors, said Chaichan Chareonsuk, chairman of the council, adding the currency39;s strength would hit agriculture and food shipments.
This is the biggest risk … there are no supportive factors in the final stretch, we have to fight to drive exports.
In the first eight months of 2024, exports rose 4.2 from the same period a year earlier, helped by a weaker baht, Chaichan said.
Exports, a key driver of the economy, fell 1 in the whole of 2023. They rose 7 in August, though the baht39;s rise is expected to impact fourthquarter shipments.
Exporters also urged the government to further delay plans to raise the minimum wage.
This would impact the cost structure and our competitiveness. It should be delayed further, don39;t consider it now, said…