BANGKOK - Thailand's exports are still expected to contract 8% this year as the coronavirus pandemic hits global trade, with a recent rise in the baht adding to the pressure, a Thai shipping association said on Tuesday.
Exports, a key driver of Thai growth, are likely to contract the sharpest in the current quarter before improving in the second half, Ghanyapad Tantipipatpong, chairwoman of Thai National Shippers' Council, told reporters.
"But the strengthening baht is a worry," she said. "If it weakens, it will help exports from shrinking more than 8%".
The group will discuss the strong baht with the Bank of Thailand (BOT) on Thursday, Ghanyapad said.
On Monday, the BOT said it was worried about a rapid rise in the baht and was ready to take steps to curb it.
The baht traded at 31.55 baht per U.S. dollar at 0550 GMT, up about 1.6% in the past two weeks. The currency, Asia's best performer in 2019, is down 5.2% since the start of the year.
In January-April, exports rose 1.19% from a year earlier. Excluding gold, shipments fell 5% year-on-year, reflecting the underlying weakness in global trade amid the virus outbreak.
In 2019, Southeast Asia's second-largest economy saw a 2.65% drop in exports amid global trade tensions and a strong baht.
(Reporting by Kitiphong Thaichareon and Orathai Sriring; Editing by Shailesh Kuber) ((orathai.sriring@thomsonreuters.com; +662 0802309; Reuters Messaging: orathai.sriring.thomsonreuters.com@reuters.net))
