Thailand is expecting a slight dip in first-quarter exports of gemstone and jewellery due to ongoing macroeconomic challenges following a robust performance in 2022, the Gem and Jewelry Institute of Thailand (GIT) revealed.

GIT Director Sumed Prasongpongchai told JNA that gem and jewellery exports remain a strong component of the country’s total trade but geopolitical and economic factors are starting to weigh on the sector.

A stronger Thai baht against the US dollar could also deter export growth, added the GIT official. As of mid-March 2023, THB has gained around 1.6 per cent to 34.43 per US dollar. 

Latest GIT figures showed gem and jewellery exports dipped 4.51 per cent year on year to US$732.92 million in January 2023. Prasongpongchai attributed this to a decline in shipments of silver, platinum and costume jewellery, and polished diamonds. This was however offset by a rise in polished coloured gemstone and gold jewellery exports.

“Thailand has always been a gem-trading nation, so coloured gems remain our most important export and import product,” he said. “Nonetheless, we anticipate a minor softening in exports this year due to stagflation and ongoing geopolitical issues.”

Thailand’s top 10 export markets include the US, India, Hong Kong, Germany, the United Kingdom, Singapore, Switzerland, Belgium, the United Arab Emirates and Japan. 

GIT figures showed that exports of gem and jewellery products, without gold, rose 30 per cent to US$8 billion in 2022. Including gold ornaments, which GIT said are generally viewed as safe and low-risk products, export figures showed a 50 per cent increase to US$15.05 billion. 

The sector benefited from a solid bridal jewellery and self-purchase and gifting categories as well as the return of in-person trade fairs and relaxed travel restrictions. According to GIT, Thailand’s key export products include gold, gold jewellery, polished diamonds, silver jewellery and polished coloured gemstones.