Bangkok, September 5, 2024 – Thailand’s gold exports witnessed a significant surge in July, contributing to a substantial increase in the country’s overall export value, according to a report released by the Thai Institute of Economics. The report revealed that the value of Thailand’s gold exports increased by 434.1% in July, driven by the ongoing tensions in the Middle East and the global trend of central banks, particularly the Federal Reserve, to lower interest rates in the short term.
The rise in gold exports can be attributed to its appeal as a safe-haven and store of value amidst the global economic uncertainties. Since May, Thailand has seen a rapid growth in its gold exports, reflecting the strong demand for the precious metal in the international market.
According to data from the Thai Ministry of Commerce’s Trade Policy and Strategy Office, Thailand’s total exports in July 2024 reached 257.2 billion US dollars, a year-on-year increase of 15.2%. This marks the highest growth rate in 28 months. The rebound in global demand for Thai products, particularly in the gold and electronics sectors, has driven the overall export growth.
Although the report did not provide the exact volume of gold exports, it is evident that the substantial growth in gold exports has significantly contributed to the overall export growth. Despite the strong performance in July, Thailand’s exports still face challenges such as the global economic slowdown and weakened consumer purchasing power in trading partner countries.
Most major trading partner countries’ Manufacturing Purchasing Managers’ Index (PMI) for July and August remained below 50, indicating a contraction in the manufacturing sector. This situation is expected to impact Thailand’s exports in the coming months.
The Thai Institute of Economics also highlighted the potential risks of falling product competitiveness and the impact of climate change and natural disasters on agricultural production. However, the institute maintained its forecast that Thailand’s total export value would grow by 1.5% in 2024.
If the strong growth in gold exports continues, the overall export value may exceed the forecasted 1.5% growth rate. This positive outlook for Thailand’s gold exports reflects the country’s strategic position in the global gold market and its ability to adapt to changing economic conditions.
Thailand’s success in boosting its gold exports can be attributed to several factors:
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Strategic Location: Thailand’s strategic location in Southeast Asia has made it a hub for gold trading and processing. The country’s proximity to major gold-producing regions, such as China, India, and Africa, has facilitated its growth in the gold market.
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Skilled Workforce: Thailand has a skilled workforce with expertise in gold processing and jewelry making. This has enabled the country to produce high-quality gold products that are in demand in the international market.
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Government Support: The Thai government has been supportive of the gold sector, implementing policies to promote investment and export growth. This has created a favorable environment for the industry to thrive.
In conclusion, Thailand’s gold exports have played a crucial role in driving the country’s overall export growth. With the ongoing global economic uncertainties, the strong performance of the gold sector bodes well for Thailand’s economic prospects in the coming months. As the world continues to seek safe-haven assets, Thailand’s gold exports are expected to remain robust, contributing to the country’s economic stability and growth.
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