US Slowdown Affects Thailand Leather And Footwear Industry

The authority's Thai Farmers' research center, nineteen, said the slowdown in the US economy will be one of the risks faced by Thailand leather goods and footwear products in two, 00 and eight years. The center pointed out that the Federal Reserve will reduce the forecast of US economic growth rate to one point three percent to two percent this year, which may lead to the reduction of imports of Thailand products in the US market. From last year, the US economic slowdown has increased by zero point seven percent, resulting in the slowdown in the import of leather goods and footwear products in the United States by two point seven percent and five percent points respectively. Spot. At the same time, the lowering of US policy interest rate will also cause Thailand's policy interest rate to decrease, so that operators can benefit from the decline in financing costs. On the other hand, it will lead to further strengthening of Asian countries including Thailand, although it helps to reduce the production cost of leather goods and footwear products, but is not conducive to the exporters and OEM of the Thai baht valuation. Manufacturer. In addition, operators will continue to be disturbed by the high price of world oil prices and huge turbulence, which will lead to higher production and transportation costs and higher inflationary pressure, which will stimulate the prices of general commodities and raw materials to rise, which will weaken the purchasing power of consumers both at home and abroad. It is reported that over half of Thailand's leather and footwear products have been exported for the past years and tend to expand with the growth of the world economy. The main import markets of leather products and footwear in the world include the United States, the European Union and Japan, and these countries are also the main export markets of Thailand because they have stronger purchasing power than other countries. However, in the two, 00 and seven years, imports of leather goods and footwear from the United States, the European Union and Japan slowed down significantly, mainly due to the slowdown in the US and regional economic growth, resulting in a slowdown in the import growth of these markets.