Exports posted an unexpected rise in February, growing for the first time in 14 months, driven mainly by gold and special items of hardware for military exercises.
Shipments rose 10.3% year-on-year to US$19 billion compared with a fall of 8.91% to $15.7 billion in January.
It was the first rise since December 2014 and the biggest since January 2013.
Imports, however, dropped more than expected, falling 16.8% to $14 billion compared with a decrease of 12.4% to $15.5 billion in January. This led Thailand to gain a trade surplus of $4.98 billion in February.
For the first two months, shipments edged up 0.67% from the same period last year to $34.7 billion, while imports totalled $29.5 billion, a fall of 14.5%. Thailand had a trade surplus of $5.22 billion for the period.
Deputy Commerce Minister Suvit Maesincee admitted the rise in exports was mainly because of two unusual items — gold and military hardware including helicopters and vehicles for military drills.
The Customs Department included helicopters and vehicles worth $683 million, which were imported and used for military drills, in the export figures.
Gold shipments amounted to as much as $1.89 billion, skyrocketing by 1,051% from the same month last year.
Military hardware and gold accounted for nearly 14% of exports. Excluding the two items, Thailand’s exports fell 2% in February from a year earlier.
Exports of agricultural and agribusiness products increased slightly by 0.4% to $2.5 billion, mainly due to higher shipments of rice (14.2%), rubber (4.9%), canned tuna (11%), frozen processed shrimp (17%), frozen and processed chicken (20.5%) and sugar (107.4%).
Exports of industrial products increased 13.8% to $15.7 billion, owing to higher shipments of gems and jewellery. Other industrial shipments saw a tepid performance in line with the world’s economic slowdown and sluggish imports by Thailand’s key trade partners.
Shipments fell for most markets except Indochina and Australia.
“The world’s overall export activities remain weak,” Mr Suvit said. “The government has also realised this threat and is preparing to move to new industries that will help drive the country to S-curved economic growth.”
Mr Suvit expects investment from new industries of 600-700 billion baht this year. Applications placed at the Board of Investment for new industries surged 97% to 32.44 billion baht in the first two months of this year.
“Despite positive figures for February, it’s not yet a time for celebrations, as the world’s economy remains volatile and uncontrollable. But once we look at shipment prospects, we start seeing signs of improvement, particularly in the farm sector,” Mr Suvit said.
The Commerce Ministry is still maintaining its export growth target of 5% this year.
Exports fell for a third straight year in 2015 to a value of $214 billion, down 5.78% from 2014 and the biggest decline since the US debt crisis sent exports tumbling 14.3% in 2009.
Shipments fell 0.3% in 2013 and 0.4% in 2014 after rises of 2.93% in 2012, 15.2% in 2011 and 26.8% in 2010.
Imports totalled $203 billion last year, down 11% from 2014 and giving Thailand a trade surplus of $11.7 billion.
The poor performance was blamed on the slow pace of the global economic recovery and falling oil prices.
Nopporn Thepsithar, chairman of the Thai National Shippers' Council, said export prospects remained fragile amid the faltering global economy and terrorism threats.