Thai exports drop less than expected, rebound not seen until H2

Thailand’s customs-based exports contracted for a fifth straight month but by less than forecast in February, as the global economy slowed, with shipments expected to drop further in the first half of the year, the Commerce Ministry said on Thursday.

Exports, a key driver of growth, dropped 4.7per cent in February from a year earlier, better than a 6.9per cent fall forecast in a Reuters poll, and against January’s 4.5per cent decline, reports Reuters.

In February, imports rose 1.1per cent from a year earlier, compared with a forecast rise of 2.1per cent, resulting in a trade deficit of $1.11 billion for the month.

Shipments are expected to show a further drop in the first and second quarters before improving in the second half, Phusit Ratanakul Sereroengrit, head of the ministry’s department of international trade promotion, told a news conference.

“There remains a large stockpile which slows imports from other countries,” he said. “The second half should be more positive,” he added.

The ministry will maintain its target of 1per cent-2per cent export growth this year, official Poonpong Naiyanapakorn said.

February’s export fall, which was also due to a high base last year, was led by lower shipments of industrial goods, with electronics down 4.7per cent year-on-year and hard disk drives tumbling 45per cent, the ministry said in a statement.

The value of rice exports rose 7.7per cent in February from a year ago but the volume dropped 5.7per cent to about 600,000 tonnes.