Exports to rise by 2%, says Apisak

Exports to rise by 2%, says Apisak

Exports are expected to expand by at least 2% this year on the back of the global economic recovery, says Finance Minister Apisak Tantivorawong.

He said such growth would correspond with predicted global economic growth of 2-3% but could rise at a faster pace with good management.

The Commerce Ministry has set an export growth target of 5% to US$225 billion this year, an average of $18.8 billion a month.

Exports, which make up 70% of GDP, fell more than expected last year, declining by 5.78% in the biggest drop in six years.

Shipments fell by 0.3% in 2013 and 0.4% in 2014 against rises of 2.93% in 2012, 15.2% in 2011 and 26.8% in 2010.

However, the Bank of Thailand recently said exports were projected to record flat growth in 2016 due mainly to weaker demand from China.

Krisada Chinavicharana, director-general of the Fiscal Policy Office, said GDP growth would come in at 2.9% for last year, exceeding its forecast of 2.8% thanks to a spate of government stimulus packages and the booming tourism industry.

Last year's 5.78% fall in exports was in line with the office's projection.

The government last year launched a wave of stimulus measures to boost the finances of rural residents, help small and medium-sized enterprises to access funding and assist property developers to sell inventory homes. It also stimulated consumption through tax breaks on shopping over the recent festive season.

Regarding the government's planned additional cash injection of 500,000 baht to each of 79,556 Village Funds, Mr Krisada forecast it would boost economic growth by 0.15 percentage points.

He said the money would be injected in the next six months.

The additional budget for Village Funds will be poured into projects such as agriculture processing and value-added farm products while developing water resources in villages to improve farm systems.

The Export-Import Bank of Thailand will support loans to improve liquidity and provide a guarantee facility for exports to help shipments reach the 5% growth target.

Exports to neighbouring Myanmar and Laos have jumped significantly, as the per capita income of both countries has surged 20% from five years ago and is expected to grow by 7-8% a year over the next five years.

For the first 10 months of 2015, total trade between Thailand and Cambodia, Laos, Myanmar and Malaysia was worth 830 billion baht.

Thailand shipped products worth 480 billion baht to the four countries, representing 8% of export value.

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