Exports unexpectedly rose for the first time in five months in July, up 4.3% from the same month a year earlier, largely boosted by higher shipments of gold as a safe-haven asset.
The Commerce Ministry said yesterday that customs-cleared outbound shipments totalled US$21.2 billion after contracting by 2.2% year-on-year in June, 5.8% in May, 2.6% in April and 4.9% in March.
Exports increased to most major trading partners, including the US, Japan, Hong Kong, Taiwan and China, especially for fresh, frozen and processed fruits and automobiles.
Exports to India also remained robust. But exports to the CLMV nations and Asean shrank, burdened by oil and oil-related products.
Shipments of agricultural and agro-industrial products returned to growth, rising 1.4% to $3.45 billion after falling 9% in June. Top performers were fresh, frozen and processed fruits (+26.1%), rubber (+9.6%), cassava products (+8.7%) and fresh, frozen and processed shrimp (+7.3%).
But exports of some key products declined, including rice (-27.2%), sugar (-25.4%) and canned tuna (-13.6%).
In the first seven months of 2019, exports of agricultural and agro-industrial products contracted 1.7%.
Industrial product exports remained positive for a second straight month in July, rising 6% after a 0.04% uptick in June. Top performers in July were gold (+406.9%), cosmetics, soaps/skincare products (+17%) and air conditioners (+4.2%).
Shipments of some industrial items decreased, including oil-related products (-14.2%), computers and parts (-5.9%) and automobiles and parts (-2.9%).
In the first seven months of 2019, industrial product exports contracted 1.4%.
Imports, meanwhile, rose 1.7% year-on-year in July to $21.09 billion, yielding a trade surplus of $110 million.
For the first seven months, exports fell by 1.9% from the same period last year to $144 billion, generating a trade surplus of $4.053 billion for the period.
Pimchanok Vonkorpon, director-general of the Trade Policy and Strategy Office, said July exports were boosted by gold as a safe-haven asset and by fruit shipments to China.
The distribution of export products and markets has been better amid proactive strategies to offset the negative impact of the US-China trade dispute, she said.
According to Ms Pimchanok, despite a variety of challenges in common with other export-oriented countries, many positive factors will strengthen exports, namely new rising-star products, opportunities to substitute products subject to retaliatory measures in US and China markets, expansion of tourism-related products, potential exports to new markets, and export promotion schemes now underway.
Easing monetary policy will also diminish the baht-appreciation effect in the fourth quarter of the year, she said.
To achieve yearly growth, exports must average at least $21.75 billion a month in the third and fourth quarters, Ms Pimchanok said.