Commerce Ministry slashes export growth target to 1%

Commerce Ministry slashes export growth target to 1%

The Commerce Ministry has succumbed to tepid export prospects, cutting its full-year growth target for shipments to 1% from an earlier 4% forecast.

Commerce Minister Chatchai Sarikulya yesterday admitted first-quarter export growth would remain in the red due mainly to the global economic slowdown and falling oil prices.

Thailand reported a 4.82% decline in exports for the first two months to US$34.5 billion, with imports down by 6.69% at $34.5 billion.

The drop was driven by falling shipments of farm products, especially rubber and rice, and oil-related weakness.

"Although the private sector foresees Thai exports this year posting zero growth at best, the ministry remains a little bullish that the figure will be about 1% or slightly higher," Gen Chatchai said.

"For the remaining months, the ministry is set to flex all its muscles to stimulate export growth as much as possible, not only in existing key markets but in new ones."

The ministry also pledged to cooperate with relevant state agencies to tackle a spate of issues raised by the private sector.

Uncertainty surrounding foreign exchange, trade facilitation, customs protocol and taxation has been deemed a stumbling block to exports.

The Commerce Ministry itself met yesterday with private-sector groups to brainstorm solutions.

Federation of Thai Industries chairman Supant Mongkolsuthree said the groups urged the government to step up efforts to promote Thai brands and to upgrade the country to an Asean hub for exhibitions and international trade fairs.

Thai Chamber of Commerce vice-chairman Kalin Sarasin called on the state to speed up formation of a national export development panel to sort out problems and promote border trade.

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