News Room - Business/Economics

Posted on 23 Jul 2008

Thai exports jump to a record high

Thai exports surged 27.4% year-on-year to a record US$16.268 billion in June, pushing first-half export growth to 23.1%, thanks largely to greater shipments of agricultural and food products. 

Rachane Potjanasuntorn, the director-general of the Department of Export Promotion, said yesterday the country's exports still managed to see healthy growth despite high oil prices, the US sub-prime mortgage crisis and slowing global economic growth.

Export growth was partially driven by greater contributions from new markets such as Indochina, the Middle East, and Africa, which produced growth of 40-50%.

Imports rose 30.7% year-on-year to $15.6 billion in June after increasing 15.7% to $14.17 billion in May.

The June trade account showed a $628 million surplus, compared with a $1.3 billion surplus in May.

Exports for the first half totalled $87.21 billion, up 23.1% from the same period last year. Imports for the same period was $88.27 billion, up 33.6 %.

The country had a trade deficit of $1.067 billion for the first half compared with a trade surplus of $4.78 billion in the first half of 2007.

Siripol Yodmuangcharoen, the commerce permanent secretary, said June exports were driven largely by high prices for agricultural products.

Thailand saw sales of agricultural products rise by 51.7% year-on-year to $2.82 billion in June.

Rice exports totalled $805 million, up 201.9% from last year, while rubber exports also rose 26.2% to $557 million. Frozen, canned and processed vegetables and fruit exports increased 26.4% year-on-year to $229 million.

Frozen and processed chicken exports rose 63.5% to $122 million in June.

Industrial goods exports totalled $12.57 billion in June, up 26.3% and mainly from plastic pellets and products, jewelry, machinery, gasoline, chemicals, crude oil, rubber products, printing products and cosmetics.

Mr Siripol said given the first half figures, the ministry was confident Thailand could achieve its full-year export target of $171.107 billion, up 12.5% from last year.

But he was still non-committal on whether the country's export growth could top 15% as set by Commerce Minister Mingkwan Sangsuwan.

Aat Pisanwanich, director of the Center for International Trade Studies, Thai Chamber of Commerce University, said 15% export growth was achievable, as the second half normally displays seasonal export demand. However, he noted second-half growth would primarily be determined by the US economy, world inflation, and interest rate hikes in Europe and Japan.

Recently, the Centre for International Trade Studies forecast the dollar value of the country's exports in the second half to increase 13.2% year-on-year to US$92.28 billion.

Exports for the whole year were projected to grow 16.9% to $178.25 billion. The rate is down slightly from 17.5% growth in 2007.

The centre forecast a trade deficit of $2.35 billion in the second half. For 2008, the trade deficit was expected to amount to $3.9 billion against a trade surplus of $12.46 billion in 2007.

''Agricultural goods remain in high demand worldwide as China, one of the world's giant exporters, is now facing poor weather. A weak dollar is also expected to increase price speculation. This will push the prices of farm products to a fairly high level,'' he said.