Thailand's exports have started to see signs of recovery and contracted less than expected in June, boosted by shipments of cars and car parts, hard-disk drives and gold.
The Commerce Ministry yesterday reported that exports fell by only 0.1% year-on-year in June to US$18.1 billion after sliding by 4.4% in May and 8% in April.
Imports decreased by 10.1% to $16.2 billion after edging up 0.5% in May following a 14.9% plunge in April.
Thailand had a trade surplus of $1.96 billion in June -- the 14th straight month with a surplus.
The ministry reported that exports of agricultural and agribusiness products shrank by 7.9% to $2.58 billion in line with slowing demand in the world market and relatively low oil prices.
The drop was led by rubber (-23.2%), tapioca products (-36.3%), sugar (-8.7%) and rice (-0.2%).
Exports of industrial products bounced back to expansion for the first time in three months, up 3.1% to $84.3 billion after dropping by 2.8% in May.
The increase was mainly driven by car and car parts, electric circuits, air conditioners and hard-disk drives.
For the first six months, Thai shipments shrank by 1.6% year-on-year to $105 billion, while imports totalled $92.7 billion, a fall of 10.2%. Thailand had a trade surplus of $12.4 billion for the period.
Deputy Commerce Minister Suvit Maesincee said brighter prospects are expected for exports in the second half of the year, driven by higher shipments of cars and key industrial products alongside a recovery of farm product prices in line with higher oil prices.
The ministry predicts oil prices will be stable at not less than $40 per barrel this year.
"We are confident that export figures for the entire year will stay in a range of -1% to 1%," Mr Suvit said. "The figures are unlikely to contract by as much as 2%, as projected by many forecasting agencies."
The government is determined to drive shipments, particularly of 30 items, in the rest of the year.
Products will be divided into four lists: those that need state stimulus (cars, plastic pallets, refined sugar and canned and processed fruits); those that need government support (cars, gold and air conditioners); those that need close monitoring and correction (rice, rubber, electrical appliances and processed seafood); and those that need speedy and immediate correction (computers, plastic pallets, gems, electrical appliances and chemicals).
Mr Suvit said Thailand's overall economic prospects would improve this year thanks to the government's economic overhaul, support for small businesses and promotion of innovation development.
Nopporn Thepsithar, chairman of the Thai National Shippers' Council, said exports fared better than expected in June thanks largely to higher shipments of automotive products, electronics and gold.
The council earlier projected that June's exports would contract by 3%.
"We are all hopeful that shipments will recover in a positive range in the remaining months," Mr Nopporn said.
"But we cannot rest assured about such growth as the world's economy remains full of negative factors, while the International Monetary Fund recently cut the global economic growth forecast to 3.1% this year from 3.2%."
According to Mr Nopporn, exporters still expect Thailand's shipments to register zero growth at best or fall by 2% this year.
However, shipments might achieve positive territory if Thailand can maintain export values for the remaining months averaging $18 billion a month, he said.
Overall, Australia was the only Thai export market that grew in the first half, expanding by 8.9%.