Export slowdown eases with 3% slide in October

The country's exports contracted at a slower pace than expected in October, shrinking only 3% from the year before thanks to the global economic recovery.

Commerce Minister Porntiva Nakasai said October exports were worth US$14.8 billion, down 0.6% from the previous month. Declines were recorded month-on-month across all product sectors.

But the year-on-year trend improved considerably from September, when exports fell 8.53% from the year before.

The major export markets are showing signs of recovery, said Mrs Porntiva. Inventories in many importing countries are also decreasing. The ministry predicted exports in November and December would show positive year-on-year growth of 5% to 10%.

As a result, whole-year exports for 2009 would shrink by 13% to 15% from last year, she said.

Next year, the ministry predicts 10-15% growth to about $160 billion, assuming an exchange rate of 33 baht to the dollar and global oil prices of $80-100 a barrel.

In the first 10 months, export values fell 19.6% year-on-year to $124.1 billion. In baht terms, they dropped by 15.6% to 4.25 trillion baht. Exports of all product sectors fell, led by agricultural and agro-industrial products, down 20.5%, and industrial goods, down 17.4%.

Traditional markets like the US, the Europe, Japan and Asean slipped by 27.2% and new markets fell by 15%.

Imports in October fell by 17.5% year-on-year, to $13 billion. In the January-October period, they declined 31.2% to $106.5 billion.

The country had a trade surplus of $17.5 billion in the first 10 months.