Thailand: Exports near double digit growth in April as rubber prices up

• May 22, 2017

Thailand’s exports grew 8.49% last month compared to the same period the year before, marking two months of consecutive growth.
The country’s exports in April reached UScopy6.86 billion, or 539.84 billion baht, up 8.49% on the year before. In March, exports rose 9.22% to $20.89 billion after declining 2.76% year-on-year in February, according to government sources. The Commerce Ministry will announce the figures to the media today.
Ghanyapad Tantipipatpong, chairwoman of the Thai National Shippers’ Council, said last month’s exports figure did not come as a big surprise given that last year’s was so low.
The growth in this year’s export value was driven by rising prices of natural rubber products, along with heightened demand for electronic goods and food processing products.
Seasonal changes also contributed, she said, adding that importers from Europe and America have increased their orders of Thai goods to cope with consumer demand over the summer season.
As a result, exports in the second quarter of this year are expected to grow 5% year-on-year after 4.9% growth in the first quarter to $56.46 billion, or 1.98 trillion baht.
Ms Ghanyapad said exports in the third quarter usually slow down before picking up again in the last quarter as foreign importers prepare for the Christmas and New Year periods.
“The council projects export growth for the entire year will be 3.5%, but the figure might be adjusted after the figures for May are out,” she said.
Some factors that may affect Thai exports are US President Donald Trump’s policies, US politics generally and Brexit, Ms Ghanyapad said.
Recently, US President Donald Trump called the leaders of Singapore and Thailand to discuss tensions on the Korean peninsula. Mr Trump further asked the two Asean leaders to visit the White House to discuss a range of issues. The Commerce Ministry aims for export growth of 5% this year after a rise of 0.5% in 2016.
However, the National Economic and Social Development Board (NESDB) projected export growth for this year at 3.6%, up from 2.9% in an earlier forecast, owing to the economic recovery of Thailand’s key trading partners. The NESDB maintained its average economic growth forecast of 3.5% this year.
Meanwhile, TMB Analytics issued a report on Thai exports this year, forecasting growth to reach 3.7%.
It said Thai exports are recovering after two years of contractions in 2014 and 2015. Exports rose slightly in 2016 and showed a more marked recovery in the first quarter of this year.

Source: http://www.bangkokpost.com/business/news/1253898/exports-near-double-digit-growth-in-april-as-rubber-prices-up