Exports down 4.4% y-o-y in May

Exports down 4.4% y-o-y in May

Global economic problems and low prices for farm products cut the value of Thai exports in May. (Photo by Krit Promsaka na Sakolnakorn)
Global economic problems and low prices for farm products cut the value of Thai exports in May. (Photo by Krit Promsaka na Sakolnakorn)

Exports fell in value 4.4% year-on-year in May to US$17.62billion, resulting in a 1.9% decline over the first five months of 2016 to $86.99 billion, and Britain's vote to leave the European Union could further affect shipments over the next few months.

Somkiat Triratpan, director of the Trade Policy and Strategy Office of the Commerce Ministry, said on Friday exports were down for the second month running in May. He attributed this to global economic problems and low prices for agricultural products and oil.

He expressed some concern over the value of the pound sterling and the euro due to the British exit from the EU. The sharp depreciation of the pound would reduce the overall value of Thai exports over the next 2-3 months, but the impact would not be severe because only 1-2% of our exports went to Britain, he said.

Mr Somkiat said the affect from any fluctuation of the euro should not be harsh either, because only 9% of Thai exports went to the EU, unlike more than 20% two decades ago.

If the exports remained at $17 billion a month for the rest of the year, total exports would be down for the year. However, Mr Somkiat expected a rise in exports in the second half of the year as usual.

To meet the Commerce Ministry's target of 5% export growth, the monthly export value should stand at $19-20 billion a month from now on, he said.

In May the value of imports rose 0.50% year-on-year to $16.08 billion, resulting in a trade surplus of $1.54 billion.

In the first five months of this year, the value of imports dropped 10.25% to $76.54 billion, for a trade surplus of $10.45 billion.

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