Shipments enjoy rebound in February

Shipments enjoy rebound in February

Exports rebounded in February, driven by the weak baht and the global economic recovery.

A worker stacks rice bags at a rice processing house in Ayutthaya province. Rice exports rose 17.4% year-on-year in February, leading overall exports for the month to expand by 2.43% after a 1.98% contraction in January. Tawatchai Khemgumnerd

Shipments rose by 2.43% year-on-year last month to US$18.4 billion after falling by 1.98% in January to $17.9 billion.

The first two months of the year together showed an increase of 0.2% year-on-year to $36.3 billion.

Commerce permanent secretary Srirat Rastapana said February's export growth was a six-month high after 3.92% in April.

Industrial exports rose by 6.8%, led by a 17.2% increase in shipments of autos and automotive parts and a 9.6% rise in shipments of electronic items plus a 7.2% increase in electrical appliances.

Shipment of agricultural products contracted 5.7%, but rice exports increased 17.4% thanks to lower prices and a weaker baht.

Mrs Srirat said exports to Japan rose by 2.7% to $1.85 billion, with those to the 15-nation EU up by 7% to $1.67 billion, Asean up 0.9% to $4.57 billion and the Middle East up 0.4% to $976 million.

Those bound to the US and China fell by 2.3% to $1.75 billion and 0.8% to $2.21 billion, respectively.

Imports last month dropped by 16.6% to $16.6 billion due to a slowdown in purchase of machinery, vehicles and vehicle parts, while the figures for the first two months fell 16% to $37 billion.

"This shows that the ongoing political conflict at home has had a limited effect on export growth," she said.

Nontheless, Mrs Srirat noted risk factors that may affect the export performance include higher oil prices, widespread drought, exchange rate fluctuation and political tensions.

"Exports in the first quarter will see zero growth or decrease slightly from the same period last year," she said. "But we remain upbeat about the whole-year prospect, given the improving economies of traditional key markets and better shipments of seafood and poultry products."

The Commerce Ministry has set an export growth target of 5% this year.

Sompop Manarungsan, president of the Panyapiwat Institute of Technology, said a drop of up to 16% in imports for the first two months was not a good sign, as it shows that exporters themselves have probably realised the country’s manufacturing for export purchase and domestic consumption are facing troubles in light of elongated political conflicts.

He warned foreign exchange is another key risk Thai exporters should be aware, citing the foreign exchange is expected to see a drastic swing in coming months thanks to speculation

In a related development, the ministry yesterday reported border trade in the first two months rose by 2.19% to 158 billion baht, while imports dropped 5.3% to 58.9 billion.

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