Thai exports continued to decline for the ninth consecutive month in June, but at a slower pace than expected, indicating a sluggish global demand. The Ministry of Commerce, however, remains optimistic and anticipates some growth for the full year. Customs-based exports, which are a significant growth driver for Thailand’s economy, fell by 6.4% in June compared to the same month last year. This decline was better than the estimated 7.3% decline projected by analysts in a Reuters poll. On a positive note, exports increased by 2% from the previous month of May.
In a statement, the ministry highlighted that the economic situation in trading partners remained subdued due to high inflation rates and elevated interest rates, which led to restrained production and consumption. Despite the decline, Thailand’s export performance has been relatively better compared to other exporting countries. Keerati Rushchano, the ministry’s permanent secretary, stated in a press briefing that the ministry is targeting annual export growth of 1% for 2023. Initially, the target was set at a 1-2% rise.
Chaichan Chareonsuk, the chairman of the Thai National Shippers’ Council, expressed optimism that exports could show some annual growth from July, as certain sectors are still performing well. In June, exports of cars and parts increased by 7.2% compared to the previous year, while circuit boards rose by 5.3%. However, shipments of computers, rubber, and oil declined. The export volumes of rice dropped by 25.4% on a year-on-year basis.
Exports to the United States declined by 4.8% in June compared to the same period last year, while exports to Southeast Asian countries dropped by 20%. On the other hand, exports to Japan increased by 2.6% and shipments to China rose by 4.5%. In June, Thailand recorded a trade surplus of $58 million, defying the forecasted deficit of $900 million. Imports experienced a decline of 10.3% compared to the previous year. During the first half of 2023, exports contracted by 5.4%, imports fell by 3.5%, and the trade deficit stood at $6.3 billion.
In other news, Thai industrial sentiment rose in June, although concerns about political uncertainty remain.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
