The Commerce Ministry is optimistic that the country's exports will recover soon after bottoming out in April.
It cites a slowdown in the rate of export contraction, rising imports in foreign markets and increased export competitiveness as a result of the weakening baht."Shipments will show stronger signs of recovery in the remaining months [of the year]. Export growth in the second quarter should rebound to show positive expansion," said Somkiat Triratpan, director of the ministry's Trade Policy and Strategy Bureau.
The ministry reported yesterday that exports had dropped 1.7 per cent year on year in April to US$16.9 billion (Bt570.5 billion), and by 3.99 per cent to $70.26 billion in the first four months of the year.
Exports are normally low in April as the month has many holidays and there is a seasonal slowdown in both March and April each year, but they will soon recover in the coming months, said Somkiat.
Excluding exports of oil and gold, which do not significantly benefit the economy, Thai shipments last month grew by 0.1 per cent to $14.73 billion, he added.
With a brighter export outlook, shipments over the remainder of the year should be worth around $20 billion a month, which would result in full-year growth of 1.2 per cent, in line with the ministry's target, he explained.
The ministry reported that shipments to many key markets had returned to positive year-on-year growth last month, especially to the US, with 8.4-per-cent expansion; India, at 7.2 per cent; CLMV (Cambodia, Laos, Myanmar and Vietnam), at 3.5 per cent; and China, at 1.1 per cent.
Reflecting deeper penetration
Despite an overall export slowdown, the share of Thai shipments accounted for by many countries increased during the first quarter, reflecting deeper penetration of these markets than at the end of 2014.
For example, the US share of Thai exports rose from 1.16 per cent to 1.25 per cent, China's share increased from 1.95 per cent to 2.2 per cent, Japan's from 2.68 per cent to 3.14 per cent, while shipments to India improved from 1.23 per cent to 1.51 per cent.
Of the Kingdom's key market areas, only the share of exports to the European Union dropped, from 1.09 per cent to 1.04 per cent.
Thai exports of many agricultural products increased last month, with the exception of rubber, whose price remained low.
Shipments of processed and frozen chicken increased 5.4 per cent from April last year, those of sugar by 16 per cent, while exports of canned and processed fruits rose by 18.5 per cent, and tapioca-product exports grew by 41.1 per cent.
April imports, meanwhile, fell 6.84 per cent to $17.42 billion, while imports in the first four months declined 6.53 per cent to $69.35 billion.
The country had a trade deficit of $523 million in April, but made a surplus of $906 million during the first four months, the ministry reported.
Somkiat Anuras, vice chairman of the Thai Chamber of Commerce, said the slight decline in April's exports was acceptable as the month contained many public holidays.
Private enterprises foresee stronger export growth in the remaining months of the year, due to rising orders from many countries, he stressed.
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