Thai exports fall less than forecast in June

THAI exports shrank for a ninth consecutive month in June, albeit at a smaller rate than expected, as global demand remains sluggish – but the Commerce Ministry said on Wednesday (Jul 26) it still expects some growth for the full year.

Customs-based exports, a key driver of Thailand’s economy, dropped 6.4 per cent in June from the same month a year earlier, beating analysts’ average estimated decline of 7.3 per cent in a Reuters poll. Exports rose 2 per cent from May.

“The economic situation of trading partners remained subdued due to pressure from high inflation rates and elevated interest rates, which led to restrained production and consumption,” the ministry said in a statement.

Thailand’s export decline, however, has been less steep than those of other exporting countries, Keerati Rushchano, the ministry’s permanent secretary, told a press briefing.

The ministry is targeting annual export growth of 1 per cent for 2023, he said. Its earlier target was for a 1 per cent to 2 per cent export rise.

“We’ll try every way to make export figures meet the target, although it’s difficult,” he said.

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Chaichan Chareonsuk, chairman of the Thai National Shippers’ Council, said exports could show some annual growth from July as some sectors are still performing well.

Exports of cars and parts increased 7.2 per cent in June year on year, and circuit boards rose 5.3 per cent, while shipments of computers, rubber and oil declined, the ministry said.

Rice export volumes dropped 25.4 per cent on-year to 572,115 tonnes in June, it added.

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Exports to the US fell 4.8 per cent in June from a year ago, while shipments to South-east Asian countries slumped 20 per cent. Exports to Japan rose 2.6 per cent and shipments to China increased 4.5 per cent.

Thailand posted a trade surplus of US$58 million in June versus a forecast deficit of US$900 million, with imports showing a 10.3 per cent on-year decline.

In the first half of 2023, the nation’s exports contracted 5.4 per cent from a year earlier, imports fell 3.5 per cent, and the trade deficit stood at US$6.3 billion.