Thai exports beat forecast in June on high global demand, weak baht

THAILAND’S customs-based exports rose by a more than expected 11.9 per cent in June from a year earlier, helped by increased global demand as well as a weak baht, the commerce minister said on Wednesday (Jul 27).

Exports, a key driver of Thai growth, beat a forecast rise of 8.5 per cent in June in a Reuters poll, and after a 10.5 per cent rise in the previous month.

In the first 6 months of 2022, shipments rose 12.7 per cent year-on-year, already above the ministry’s 4 per cent export growth target for the year, Commerce Minister Jurin Laksanawisit said.

“Global food demand continues to rise and production is increasing. A weak baht is a further boost to exports,” he told a news conference.

The Thai currency traded at 36.87 per dollar at 4.02 am GMT, around its weakest level in more than 15 years.

In June, exports were lifted by a yearly 6.7 per cent rise in industrial goods shipments, and a 24.5 per cent jump in exports of agricultural and agro-industrial products, the ministry said in a statement.

Exports to key markets were largely higher in June, with those to the United States up 12.1 per cent from a year earlier and those to South-east Asia jumping 28.3 per cent. Exports to China dropped 2.7 per cent from a year earlier.

June imports climbed 24.5 per cent from a year ago, with a trade deficit of US$1.53 billion in the month. REUTERS