Exports fell for the fifth straight month in December, but eased from the 7.39% year-on-year plunge in November, resulting an a full-year contraction of 2.65% in 2019 to US$246.24 billion.
The Commerce Ministry reported on Wednesday that customs-cleared exports fetched $19.15 billion in December, down by 1.28% on the same month in 2018, after falling 7.39% in November, 4.5% in October, 1.4% in September and 4% in August.
“Noticeably, the impact of the trade war on Thai exports has stabilised and begun to decline in recent months owing to substitution effects both in the United States and China, and supply chain adjustments.
"Exports of electronics rebounded over sixteen months and exports of computers registered growth across major markets,” said Pimchanok Vonkorpon, director-general of the Trade Policy and Strategy Office, the economic planning unit of the Commerce Ministry.
“Moreover, the US-China phase-1 trade deal has raised optimism for a positive global economic outlook and helped business confidence in the near- to medium- term.”
Ms Pimchanok said the signing of MOU's by Deputy Prime Minister and Minister of Commerce Jurin Laksanawisit had born fruit, boosting exports of rubber, rubber products, rice and prepared foods to Turkey, as well as exports of rubber, rubber products, wood and wood products to India.
Aside from that, some agricultural and agro-industrial products reached historical export values amid a challenging period of a strong baht -- for example, fresh, frozen, and processed fruits, fresh and frozen chicken, beverages, wheat products and other food preparations, sauces and preparations.
Exports of rising industrial products, namely motorcycles and parts, furniture, and cosmetics, soaps and skincare products had steadily increased and maintained a positive trend this month.
Another highlight in December was that exports to two major trading partners, the US and China, recorded positive growth at 15.6 and 7.3% respectively. Exports to Taiwan and the Middle East also strengthened, increasing by 16.2% and 11.4% respectively, Ms Pimchanok said.
Overall, total exports in 2019 contracted 2.65% from the previous year, fetching US$246.24 billion, with imports dropping 4.7% to $236.64 billion, for a trade surplus of $9.6 billion.
Ms Pimchanok attributed the annual fall in exports mainly to the global economic slowdown and the uncertainty of trade; low global oil prices; decreasing exports of major industrial products such as automobiles and parts due to increased competition in primary markets, challenges in transitioning to new technology, and tightened production or export standards; and low prices for agricultural products affected by global market prices and supply shortages of some products.
Ms Pimchanok expects exports to improve in future, reflected by the decreasing contraction rate, as impacts from external factors are neutralized, along with adjustments to important product groups affected by the trade war, and greater distribution of export markets.
However, other challenging factors remain, namely oil refinery shut downs, and industrial factors in the automobile and agricultural sectors, she said. The US-China phase-1 deal and a clearer direction for Brexit strengthen the trading atmosphere in the short- to medium-term.
Although economies of major trading partners such as China and the European Union seem sluggish in 2020, strong consumption will provide an opportunity for Thai exports, especially consumer and related products, she said.