During the second quarter of 2019, the continuing trade war between the world’s two biggest economies of the United States and China has intensified geopolitical instability. The US-China tariff measures also affected the volume of global trade causing an economic slowdown in trading partner countries integrated in the supply chain.
Consequently, exports of goods and services from Thailand have been underperforming, causing the economy to expand at a slower rate. This, together with the Thai baht appreciation, contributed to a decline of 4.1% in export volume in the first six months of 2019.
Foreign investments to the country have also been affected by the strong Thai baht which has appreciated against the Chinese yuan by approximately 10.3% while hitting a six-year high against the US dollar, gaining about 4.1% at the end of Q2 2019.