Thailand's economy grew at its slowest pace since 2014 in the first quarter of this year as weaker global demand and trade tensions weighed on exports. An escalation of the China-US trade frictions is likely to slash growth in Thai exports to less than half that of last year. This slowdown is negatively impacting Thailand's economy which heavily depends on a combination of trade, foreign investment and tourism for growth. Our correspondent, Dusita Saokaew, reports.

A sign of tough times as shipments of raw rubber sheets just sit, waiting. It was once this 'white gold' that made Thailand the world's top rubber producer. But the natural rubber market has seen somewhat of a reversal in fortunes as it finds itself at a crossroads of bitter frictions between the world's two biggest economies that is sending ricochets across Southeast Asia with unexpected consequences.

More than half of Thailand's rubber sheet exports go to China to be manufactured into products ranging from car tyres to rubber gloves. The drop in demand from China due to tariffs on its rubber products has resulted in a 10.4% decrease year-on-year of Thai rubber with prices plummeting.

KORAKOD KITTIPOL ASSISTANT EXECUTIVE VICE PRESIDENT THAI HUA RUBBER "The maximum is around $7000 per tonne, nowadays it's only $1800 per tonne. If China has a problem, any problem in China it will affect negative side for the Thai country."

But this trend is not only limited to the rubber industry. Sales of computer parts fell by 10.6%, auto parts fell by 4% and machinery parts fell by 12.3%. Once ranked as one of the fastest growing countries in Southeast Asia, Thailand's trade dependent economy is being dragged down by the spillovers from the trade tensions.

KIRIDA BHAOPICHITR RESEARCH DIRECTOR THAILAND DEVELOPMENT RESEARCH INSTITUTE "The trade war has an impact on Thai Exports particularly to China. We have already seen a decline in exports year-on-year since the 2nd half of last year. When these 2 major markets have been affected by the trade war so they are demanding a slower or even contracting demand from Thailand as well."

DUSITA SAOKAEW BANGKOK "In 2019, Thailand's exports have to brave a flurry of challenging factors such as the US-China trade tensions, exchange rate volatility, trade policy uncertainty and new trade agreements that take effect this year. But there may be a silver lining. Although its economy could take a hit in the short term, Thailand may also be able to capitalise on shifting supply chains."

Global trade is in Thailand's DNA. And as new global diplomatic and economic fault lines are appearing, with new and untested consequences emerging, Thailand's resilient economy will once again be severely tested. Dusita Saokaew, CGTN, Thailand.