Exports drop 6.0% in Nov, slightly worse than forecast

Exports drop 6.0% in Nov, slightly worse than forecast

Containers are stacking up at Khlong Toei port, Bangkok. (Photo: Port Authority of Thailand)
Containers are stacking up at Khlong Toei port, Bangkok. (Photo: Port Authority of Thailand)

Thailand's exports dropped for a second straight month in November and by more than expected, due to a global slowdown and China's lockdown measures, the Commerce Ministry said on Tuesday.

Exports, a key driver of Thai growth, declined 6.0% in November from a year earlier, compared with a forecast fall of 5.2% year on year in a Reuters poll. That came after October's 4.4% drop.

Exports of agricultural and agro-industrial products dropped by 2% in November from a year earlier, while shipments of industrial products declined 5.1%, the ministry said in a statement.

Among major markets in November, shipments to the United States rose 1.2% from a year earlier while those to Southeast Asia dropped 9.5%. Exports to China declined 9.9% from a year earlier.

In the first 11 months of 2022, exports increased 7.6% from the same period a year earlier, compared with the ministry's target of a 4% export rise for the full year.

In November, imports were up 5.6% in November from a year earlier, compared with a forecast 0.8% dip. Many imports will be used for producing goods to be shipped out again.

Thailand recorded a trade deficit of US$1.34 billion in November, versus a forecast deficit of $200 million.

Earlier on Tuesday, Industry Ministry data showed factory output in November dropped 5.6% from year earlier, the biggest contraction in more than two years as global demand slowed, and the ministry expected a further fall in production in December.

Industrial products account about 80% of total exports. 

The cabinet on Tuesday approved the Bank of Thailand's (BoT) headline inflation target of 1% to 3% for 2023, unchanged from this year, government spokesperson Traisuree Traisoranakul told reporters.

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