January exports remained in the doldrums, with shipments falling by the biggest margin in five months.
The Commerce Ministry reported Wednesday that exports contracted by 3.46% last month to US$17.2 billion, the biggest fall since last August.
Last December, exports rose by 1.9% year-on-year to $18.8 billion, but the growth was not large enough for the 2014 performance to escape contraction. Full-year figures showed a decline of 0.41% to $228 billion, the second straight year for a drop after shipments fell by 0.3% in 2013.
Bank of Thailand spokesman Chirathep Senivongs Na Ayudhya said last month's export figure was in line with the central bank's forecast, signalling that the export sector had not yet recorded a decent recovery.
The fall in exports was due largely to depressed agricultural and petroleum products on the back of tumbling oil prices.
Farm exports contracted by 13% year-on-year last month to $2.56 billion. Rubber, sugar and rice exports dropped significantly, while food exports grew modestly by 1.7% year-on-year.
Rubber shipments fell by 7.6% to 302,300 tonnes last month, with value down 40.6% to $427 million. Sugar exports dropped by 7.5% to 357,654 tonnes, with value down 12.6% to $145 million.
Rice shipments saw a fall of 12.6% to only 608,504 tonnes, with value down 13% to $333 million, as several countries switched to cheaper rice from other producers.
Even worse, manufactured exports rose by only 0.6% year-on-year to $13.7 billion. Main products performed well including integrated circuits, which rose by 21% year-on-year in January, cars (up 11.7%), steel (up 9%) and computers and parts (up 3.7%).
Manufactured exports that underperformed included petroleum products (down 28%), chemicals (down 22%) and plastics (down 10.7%), affected mainly by the fall in global oil prices.
Exports to several key markets remained weak last month, with shipments to China falling by 19.7%, the Middle East down 8.3%, Japan down 7.5%, the EU down 5% and Asean down 0.7%.
But exports to the US and Australia managed to grow by 6% and 3%, respectively.
Imports fell by 13.3% year-on-year to $17.7 billion last month, led by a fall in oil imports (down 47%).
Raw materials also fell by 3.7%. Capital goods rose modestly by 1.7%, led by imports of computers and parts. Imports of machinery were weak, suggesting a slow pace of recovery in domestic investment.
Chantira Jimreivat Vivatrat, deputy director–general of the International Trade Promotion Department, said despite January's poor performance, the Commerce Ministry was maintaining its export target of 4% growth this year.
That figure is based on projections that crude oil will average $80 a barrel this year and the baht stay steady at 32 to 32.50 to the US dollar.
Ms Chantira admitted the target was relatively high but insisted there were still several months left for the government and authorities to work harder to boost export growth to live up to the target.
The Commerce Ministry will meet with overseas trade officials and the private sector from March 11-16 to re-evaluate export prospects and adjust Thailand's export strategies in line with changing market conditions.