Jurin remains upbeat on export prospects

Jurin remains upbeat on export prospects

Growth on course to exceed 4-5% target

Commerce Minister Jurin Laksanawisit remains optimistic that exports will expand well over the remaining months of this year and exceed the growth target set at 4-5% over 2021's level.

He said the global demand for food in particular is expected to increase during the rest of the year and that food prices are likely to remain high.

Other supporting factors include the US policy towards Chinese technology products which might create an excess supply of chips in the global market and benefit Thai manufacturing sectors such as cars, electrical appliances and electronic equipment. Moreover, interest rate hikes in countries that are trading partners will result in baht depreciation and help Thai exporters compete in the global market.

Nevertheless, he said inflationary risks in many countries, the energy crisis in Europe, and the property crisis in China may put downward pressure on the economy worldwide, hence warranting close monitoring.

According to Mr Jurin, the ministry also remains committed to continuing to ramp up export promotion activities in the remaining months of this year in an effort to stimulate exports.

The ministry planned to organise 530 activities to boost exports this year, 345 of which were scheduled for the second half. Some 185 promotional activities were held in the first half of the year.

The ministry also looks set to expand into 105 key cities in 36 countries in product areas such as chicken, construction materials and services, as well as the furniture market in Saudi Arabia and pet food market in the EU. It pledges to continue working with the private sector to address trade obstacles such as the container shortage and fruit transportation to China.

"The export sector remains an important engine to increase the country's economic growth this year as well as from tourism which has begun to recover," said Mr Jurin.

In a related development, the Commerce Ministry reported yesterday that the customs-cleared value of the country's exports continued to expand in August -- for the 18th consecutive month -- with a growth rate of 7.5% year-on-year to US$23.6 billion (861 billion baht), after a 4.3% increase in July.

Thai exports of the real sector (excluding gold, oil-related products and arms and weaponry) rose by 10.1% after a 4.1% rise in July.

A major contribution was the export of agro-industrial products due to high global demand, especially for processed food products such as frozen and processed seafood, frozen and processed chicken, along with pet food.

Meanwhile, exports of industrial products expanded well after a slowdown in the previous month, driven by a rebound in exports of automobiles and equipment, computers and electrical appliances amid global economic risks, including high inflationary pressure, China's economic slowdown, and Europe's energy crisis.

According to the Commerce Ministry, Thai exports of agricultural and agro-industrial products rose for the 21st consecutive month in August, with a growth rate of 4.6% year-on-year to $4.06 billion, while industrial product exports increased for the 18th consecutive month with a growth rate of 9.2% year-on-year to $18.6 billion.

Meanwhile, imports increased by 21.3% from August last year to $27.8 billion, resulting in a trade deficit of $4.21 billion.

In the first eight months of 2022, Thai exports expanded by 11% from the same period of last year to $196 billion, while imports rose by 21.4% to $211 billion, resulting in a trade deficit of $14.1 billion.

Chaichan Charoensuk, chairman of the Thai National Shippers' Council, said the country's export prospects overall in the remaining months of the year remain in good shape, while the continued baht depreciation will benefit exports.

"We're quite happy with the ongoing export situation, with the food sector becoming the product champion, while automobile exports are recovering thanks to an improvement in the chip shortage situation," said Mr Chaichan. "If Thai exports could maintain their growth momentum like this, we believe export growth will exceed 8% this year."

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