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Thai exports fall 10.5% amid Middle East tensions
AI In-brief 13 Sept 22:04

Thai exports fall 10.5% amid Middle East tensions

  • Thai food exports contracted sharply by 10.5% in the first two months of 2026, leading to a revised full-year target of 1.4 trillion baht.
  • This decline stems from a 'perfect storm' of global factors, including weakened demand, a strong Thai baht, US trade tariff uncertainties, import restrictions by key partners, and border tensions with Cambodia.
  • The Middle East conflict is directly impacting food exports from March, threatening products like canned tuna and rice by disrupting shipping routes and escalating energy and logistics costs.
  • Despite the overall downturn, the 'Future Food' sector shows resilience, growing steadily and increasing its share of total food exports to 8.9%, driven largely by health and wellness products.
  • The export outlook for Q1 and Q2 2026 remains challenging with further contractions anticipated, though a potentially weakening baht and global food security concerns could offer a modest recovery later in the year.
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