BANGKOK: In the wake of falling exports for the seventh straight month in July, exporters are concerned that Thai shipments may slip into a full-year contraction of between 4.5% and 5%. Nopporn Thepsithar, chairman of the Thai National Shippers’ Council (TNSC), said volatile foreign exchange and the weak prospects of the global economy could aggravate Thailand’s export downturn. Early last month, the TNSC cut its export forecast to a 4.2% decline.
The Commerce Ministry last Thursday said July exports fell by 3.56% year-on-year to UScopy8.2 billion. The contraction was a slowdown from June’s 7.87% year-on-year decline, the biggest drop in exports since an 8.15% fall in December 2011. The continued weakness was due to soft demand amid a weak global economy and lower export prices, mainly for oil-related and farm products.
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Exports to many major markets, especially Japan, the EU, Asean, the Middle East, Africa and China, remained in the red. Shipments of automobiles and auto parts have recovered, while those of gems and jewellery, electric circuits, steel products, air conditioners and parts, and rubber have seen strong growth. Agricultural and agribusiness exports fell by 5.1% year-on-year to $2.88 billion in July, while industrial goods shipments fell by 2.6% to copy4.2 billion. For the first seven months, exports totalled copy25 billion, down 4.66% year-on-year.
