Economy News

Thailand’s Food Exports Set to Reach Record High in 2023

Thailand’s Food Exports Set to Reach Record High in 2023

Thailand’s food export industry is set to achieve a record high of 1.5 trillion baht ($44.31 billion) in 2023, according to a leading industry group consisting of representatives from the Thai Chamber of Commerce, the Federation of Thai Industries, and the National Food Institute. This is a 2.1% increase from the previous year, largely due to a rebound in global demand and China’s reopening.

Thailand’s food shipments, which account for 14.6% of the country’s total exports, grew by 10% year-on-year to 346 billion baht in the first quarter of 2023. However, there may be a decline in the second quarter due to a high base last year, before recovering in the second half of the year, according to Anong Paijitprapapon, president of the National Food Institute.

Recovery in Global Demand and China’s Reopening to Boost Thai Food Exports

The global food industry has been facing challenges due to the COVID-19 pandemic, with trade disruptions and restrictions impacting the supply chain. However, the Thai food export industry has been resilient and has seen a significant increase in the first quarter of 2023. The main drivers of growth are the recovery in global demand and the reopening of China’s economy.

China is one of Thailand’s major food export markets, and the recent reopening of the country’s economy after the pandemic has boosted demand for Thai food products. This trend is expected to continue, as Chinese consumers continue to seek high-quality and safe food products.

Challenges in the Second Quarter

Despite the positive outlook, the Thai food export industry may face challenges in the second quarter of 2023 due to a high base last year. This is because the industry experienced a surge in demand during the second quarter of 2022, as consumers stocked up on food supplies due to pandemic-related concerns. As a result, the growth rate for the second quarter of 2023 may be lower than expected.

Recovery Expected in the Second Half of 2023

Despite the challenges in the second quarter, the Thai food export industry is expected to recover in the second half of 2023. The industry is expected to benefit from the continued recovery in global demand, as well as increased demand from China and other key markets.

Additionally, the Thai government has implemented measures to support the food export industry, such as the reduction of trade barriers and the promotion of Thai food products in international markets. These measures are expected to further boost the industry’s growth in the coming years.

Conclusion

In conclusion, Thailand’s food export industry is poised for growth in 2023, with a predicted record high of 1.5 trillion baht ($44.31 billion). The industry’s recovery is being driven by increased global demand and China’s reopening, although there may be challenges in the second quarter due to a high base last year. However, the industry is expected to rebound in the second half of 2023, supported by government measures and continued demand from key markets.

Rogerio Alvarez is an experienced financial journalist and author who specializes in covering economic news for Livemarkets.com. With a deep understanding of global finance and a passion for uncovering the stories behind the numbers, Rogerio provides readers with comprehensive coverage of the latest economic developments around the world. His reporting is insightful and informative, providing readers with the knowledge they need to make informed decisions about their investments and financial strategies.