Thailand exports decline in June, fall remains less than expectation

Exports in Thailand during the month of June declined, although the fall remained less than what markets had anticipated, slightly helped by shipments of cars and gold. However, demand from major markets around the world remained subdued.

Thailand’s exports fell 0.1 per ent from a year earlier, compared with the median forecast for a fall of 2.02 percent in a Reuters poll, data released by the Commerce Ministry of Thailand showed Wednesday.

In addition, shipments to China fell 11.9 percent from a year earlier and ones to Japan dropped 3.8 percent. But exports to the United States rose 4.7 percent and those to Europe were up 0.9 percent. Moreover, total shipments fell 4.4 per cent on the year in May, following two months of rises, which were distorted by high exports of gold.

Exports constitute around two-thirds of the country’s total economic output that has witnessed severe contraction in each of the past three years. Exports of key industrial products accounted for 80.3 percent of total shipments in June, and agricultural goods were 14.2 percent.

Among industrial products, 14.9 percent were classified as overall electronics and another 15.2 percent were overall vehicles and parts. Meanwhile, the central bank of Thailand has forecast that exports are likely to fall further this year, almost around 2.5 percent. Its earlier working target was 5 percent growth.