BANGKOK: Thailand exports fell more than expected, showing that a key growth engine for the country is still sputtering, but imports surprisingly rose for the first time in five months.
The military took power in a coup last May to end political unrest and get the economy going, but growth last year was just 0.7 per cent.
Thai exports have been weak since before political tensions began in late 2013, while domestic demand remains sluggish and big public infrastructure projects have yet to get under way.
Exports, which equal more than 60 per cent of the economy, declined 6.14 per cent in February on the year, the Commerce Ministry said on Wednesday. That was the biggest drop in six months and nearly twice the decline projected in a Reuters poll.
With disappointing exports in early 2015, “the outlook is not so good,” said Sarun Sunansathaporn, economist with Tisco Securities in Bangkok. “Thailand’s economy is facing a downside risk.” The ministry blamed slow global growth and said the baht’s strength against the currencies of trading partners was another factor.
Tim Leelahaphan, economist at Maybank Kim Eng, cited low commodity prices and how trading partners “are not doing so well”.
Exports to China fell 15.1 per cent, while those to Japan were off 11.7 per cent and ones to Europe by 4.7 per cent.
Shipments to the US rose 5.1 per cent.
Agricultural exports slipped 12.5 per cent — led by rubber’s 39 per cent plunge — and those of industrial goods dropped 3.7 per cent.
