Oct exports hit 21-month high

Oct exports hit 21-month high

Thailand’s exports increased the most in 21 months in October, posting year-on-year growth of nearly 4%, driven by overseas demand for vehicles and parts.

Commerce Minister Chatchai Sarikulya said exports last month totalled $20.2 billion, up 3.97% from October 2013. Imports, meanwhile, tumbled 4.88% year-on-year to $20.1 billion, leaving Thailand with a $32 million trade surplus for the month.

Suzuki Celerio compacts wait to be loaded upon an NYK vessel at Laem Chabang Port for shipment to Europe. Thailand’s exports increased the most in 21 months in October, posting year-on-year growth of nearly 4%. (Photo by Piyachart Maikaew)

Exports in the first 10 months of 2014 totalled $190.6 billion, down 0.36% from the same period last year, while imports amounted to $192.1 billion, down 9.49%. The accumulated trade deficit was $1.486 billion.

Automobiles and auto parts led the growth in industrial exports in the month while some farm items, including rice, sugar and tapioca, posted gains.

Gen Chatchai said if Thailand could ship at least $19 billion during November and December, exports would finish up for the year.

While he wouldn't estimate how much of an increase Thailand could generate this year, Fiscal Policy Office deputy director-general Ekniti Nitithanprapas said the saw outbound shipments growing only 0.1% this year due to lower farm prices and the slow global economy.

He said the fragile global recover was likely to impact the Thai economy, due to its large dependence on exports. Only the US, Cambodia, Laos, Myanmar and Vietnam has shown recovery, while the outlook in Europe and Japan remained gloomy.

Thailand has shifted the export focus to China when the US was in crisis but the office viewed that China is going to have economic fluctuation therefore, Mr Ekniti questioned the ability of Thailand to adjust the strategy toward the US again.

Neighbouring countries may see 7%-8% economic growth, which will help push Thai exports there by at least 10%.

On the outlook for domestic consumption, he said private consumption was increasing, but could grow faster if the government speeds investment, which largely has stalled since the construction of Suvarnbhumi airport.

"As exports, which generate the most revenue for the country, don't look good for Thailand next year, major investment by the government could be a significant economic driver," he added.

Mr Ekniti forecast that Thai export in 2015 would rise by 3.5% in 2015, in line with the improved global economy.

Do you like the content of this article?
COMMENT