Exports continue to gain in August

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Exports continue to gain in August

Yearly contraction smallest in 6 months

Writer: PHUSADEE ARUNMAS

Published: 18/09/2009 at 12:00 AM

Newspaper section: Business Link

Exports in August climbed above US$13 billion for the first time since last November, bolstering the government's confidence that November and December shipments could record double-digit growth over the same months last year.

 

The dollar value of exports rose month-on-month for the fourth consecutive month to $13.28 billion from $12.9 billion in July, $12.33 billion in June and $11.65 billion in May.

 

The export decline on a yearly basis was the smallest in six months, as orders for agricultural products, electronics and auto parts started to recover.

 

Shipments dropped 18.37% in August from a year earlier compared with a 25.68% contraction in July, 25.92% in June, 26.6% in May, 26.1% in April and 26.4% in January.

 

Siripol Yodmuangcharoen, the permanent secretary for the Commerce Ministry, attributed the improvement in dollar values to higher purchases, particularly of tapioca products which rose 10.3% in value, processed and frozen shrimp rising 3.2%, and fruit and vegetables up 26.8%.

 

"Exports are on an uptrend now," said Mr Siripol. "Companies are getting more orders and that should boost export values the rest of the year."

 

According to Mr Siripol, the ministry believes shipments in the fourth quarter would average more than $13 billion per month, with double-digit growth in the last two months of the year.

 

Commerce Minister Porntiva Nakasai said exports were expected to grow by 3-5% in the final quarter, as foreign purchase orders have now resumed. The growth figures would also reflect poor conditions at the end of 2008, the start of the global economic slowdown.

 

"Exports may rise at least 10% in 2010 after an anticipated 15-19% contraction this year," she said.

 

However, imports still fell by 32.8% in August year-on-year to $11.2 billion after a 32.5% decline a month earlier. The trade surplus widened to $2.08 billion from $706 million in July.

 

On the monthly basis, imports also dropped 8.2% largely due to a significant decline in gold imports worth $300 million in August from a month earlier.

 

For the first eight months of the year, exports totalled $94.39 billion, down 23.1%, resulting in a $13.77-billion trade surplus.

 

Rachane Potjanasuntorn, director-general of the Department of Export Promotion, said the department planned 42 projects including three major trade fairs, 19 international trade shows and trade exhibitions in new markets including Macau, Shenzhen and Xishungbanna of China to stimulate exports in the remaining months.

 

Discussing the strong baht, he said the government should manage the foreign exchange at appropriate levels otherwise it would hurt the export recovery.

 

Somphob Manarungsan, an economist at Chulalongkorn University, said the prospects were improving with the economy picking up and orders resuming.

 

"Thailand's exports have a chance to turn positive from October onward," said Mr Somphob. "But [achieving] growth of as much as 10% in a year to come is still pretty tough, as the world's economy has yet to show a clear recovery, as indicated by falling exports to the key markets such as the US, Japan and the European Union in August."