Posted on 22 Apr 2009
Exports fell for a fifth straight month in March, bringing the first-quarter decline in dollar value to 20.55% year-on-year, as demand for industrial, agro-industrial and agricultural products fell.
The decline in March was 23.1% from a year earlier to $11.55 billion, according to Siripol Yodmuangcharoen, the permanent secretary for the Commerce Ministry.
Agricultural and agro-industrial export value fell 20.6% in light of sluggish demand, intensifying competition and more price bargaining. Industrial product exports fell 21.6%.
Imports in March slid 35.1% to $9.45 billion with declines in most sectors. Fuel import values were down 40.2%, reflecting in part higher oil prices a year ago. Capital goods imports were down 24.7%, raw and semi-finished materials down 43.2%, consumer products 13%, and vehicles and parts 38.3%.
However, the ministry said the March figures were an improvement on the final two months of 2008, particularly in raw materials and semi-finished products.
The country's trade surplus in March narrowed to $2.1 billion from a $3.58 billion a month earlier. However, for the first quarter the surplus was $7.05 billion.
Mr Siripol said the overall export decline of 20.55% to $33.78 billion in the first quarter was within expectations, given the poor world economy.
For the quarter, agricultural and agro-industrial exports were down 19.2%, industrial products such as electronic goods, electrical appliances and automobiles and parts 17.9% and other items 32.6%.
Imports for the first quarter were worth $26.73 billion, a fall of 37.6%, led by a 50% decline in the value of fuel imports.
Rachane Potjanasuntorn, the director-general of the Department of Export Promotion, said he was slightly encouraged by signs of recovery in some sectors including construction, gems and jewellery and beauty-related and lifestyle industries.
As well, he said, while purchase orders in all traditional markets fell, sales in new and emerging markets such as the Middle East and
The Commerce Ministry has joined with the Federation of Thai Industries and the Thai Chamber of Commerce to propose new assistance measures for exporters. They include tax rebates for exporters who import raw materials and use local raw materials for exported goods.
If approved by the Finance Ministry, the tax breaks could cost the government from 92 billion to 128 billion baht, but could help generate export revenue of 960 billion, said Commerce Minister Porntiva Nakasai.
Based on the first-quarter results, the country's exports were now likely to contract by 15-20% this year, said Aat Pisanwanich, director of the Center for International Trade Studies of the University of the Thai Chamber of Commerce (UTCC).
"We still believe the performance in the second quarter will remain in contraction, as economies of key markets have yet to see any recovery," said Mr Aat. "What the government needs is to accelerate helping exporters by easing their financial liquidity, tapping more into new and emerging markets and lowering logistics costs for exporters."
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