Export slump deepens in May

Published: 19/06/2009 at 08:34 PM
Online news: Breakingnews

Exports slumping for the fifth consecutive month in May prompted the government to cut its target this year to a contraction of 15-19% as shipments to the key markets are likely to remain weak until year-end.

The contraction could exceed 20% if new export stimulus measures fail to win cabinet approval, warned Siripol Yodmuangcharoen, the Commerce Ministry's permanent secretary.

The ministry earlier had forecast zero growth in exports in the best case and a 3% decline in the worst case.

The dollar value of Thai exports in May fell 26.6% from a year earlier to US$11.65 billion and was down 17% in local currency to 411.58 billion baht.

Agricultural and agro-industrial shipments fell 26.9% to $1.94 billion as customers delayed purchases and gained more price bargaining power amid rising competition, especially for rice, said Mr Siripol.

Rice shipments declined 15.9% to 735,048 tonnes valued at $406 million, down 38.1%. Rubber volume fell 19.6% to 169,162 tonnes worth $229 million, down 21.7%.

Imports slid 34.7% in May to $9.25 billion, producing a trade surplus of $2.4 billion.

For the first five months, imports totalled $45.81 billion, down 63.8%, for a surplus of $10.05 billion.

Mr Siripol said the ministry would propose urgent measures to stimulate exports including low-interest buyer credits from the Export-Import Bank to importers who buy products from Thailand.

About the author

Writer: Bangkokpost.com

Keep this article in your social bookmark:

Latest stories in this category:

Share your thoughts

For more candid, lengthy, conversational and open discussion between one another, use our Forum

Report objectionable comments click here. Include: discussion #, commenter name, comment date / time as it looks on the page. Example: discussion 15: 09/01/2009 at 10:00 AM.

shame

Discussion 5 : 20/06/2009 at 11:37 AM5
Weak in export, poor agricultural and agro-industrial, car and electronics industry, etc?

Weak in import, poor trade transaction, thai use thai product, poor spending, etc?

Govenment can't balance and hold those problem, situation is getting worse in month to month basis.

Getting the loan from local bank is not a problem, what they call stimulus package, but did they really know will it fix those 2 above issue really. Any doubt from what feel so far.

If not, we're facing 3 problem which will/may affect our daily living soon, as more and more economic may come.
bizasusual

Discussion 4 : 20/06/2009 at 10:41 AM4
Imports slid 34.7% in May, this is even more relevant than the export numbers as the Thai industry relies heavily on imports.
What does this means: less energy imported, less machinery, less investments .... you can have a trade surplus but it does not mean anything as Thailand economy is export oriented and facing huge trouble ahead. The strenght of the baht which favors imports, is not relevant any more. Let the Baht slide (as the market is asking, but obviously not the BOT, for 'face' reasons?), let exporters get their way and then the baht will move up only if necessary.
Joe Blow

Discussion 3 : 20/06/2009 at 05:30 AM3
What did you expect?!

The finance woman arbitrarily, arrogantly strengthening the baht. I hope it comes back to bite you ten-fold.
Too High

Discussion 2 : 19/06/2009 at 09:59 PM2
Until the Baht is devalued by minimum 5% (but 10% really required) it's only going to get worse
Fox

Discussion 1 : 19/06/2009 at 09:58 PM1
what is going wrong with thailand!!! it was the first coutry which declared he was safe and so so far from the economic crise!!! you should read more about the feeding chain in natural science, espacially the Bank of thailand managers BOT.

Export slump deepens in May