Thai exports unlikely to be seriously affected by Turkey's financial crisis

BANGKOK, August 15 (TNA) - The Thai Ministry of Commerce says that the country's targeted export growth this year at about 8 per cent year-on-year should not be seriously affected by Turkey's financial crisis currently. Pimchanok Vonkorpon, Director-General of the ministry's Office of Trade Policy and Strategy Office (TPSO), made the assessment on August 14, in response to latest reports that the Turkish currency, lira, has heavily depreciated by about 45 per cent since early this year due to, among other factors, a political issue between Ankara and Washington. According to the latest reports, the Turkish lira has even depreciated by about 20 per cent since late last week, its historic weakening step, after the United States has imposed stiff import tariffs of 50 per cent and 20 per cent against Turkey's exports of steel and aluminum respectively, following Ankara's rejection of Washington's call on releasing an American pastor who have been jailed in Turkey for two years on espionage charges. Pimchanok pointed out that Turkey is Thailand's 33th export market, with shipments of Thai products to the Turkish market accounting for only 0.51 per cent of the total Thai export during the first half of this year, worth 644.3 million US dollars, including automobiles and parts, air conditioners, refrigerators, rubber products and plastic pellets. The TPSO chief noted, however, that the financial crisis in Turkey currently has caused an economic slowdown due to a jump in the country's debt burden, with private debts to European banks, mostly with those in France and Spain, amounting to about 325 billion US dollars and accounting for about 70 per cent of the country's total external debt, as well as a twin deficit of 5.5 per cent and 3.1 per cent in the country's current account and state fiscal status respectively and high inflation and unemployment rates at 11.1 per cent and 11.2 per cent respectively. The TPSO chief conceded that the economic crisis in Turkey may have a minor impact on Thai exports in terms of a drop in shipments of Thai products to the Eurasian country and a short-term uncertainty to the Thai financial and capital markets. The TPSO chief foresaw that Thailand's targeted export growth of about 8 per cent year-on-year should not be seriously affected by the economic crisis in Turkey, nor should the Thai tourism as there is a small number of Turkish tourist arrivals in Thailand so far. Besides, a possibility that the Turkish government would implement a capital control measure should not significantly affect the Thai economy due to a small amount of Thailand's investment funds in the Eurasian nation. (TNA)