Thailand
Thailand: June exports defy baht, jump 11.7%
Exports in June surged 11.7% year-on-year despite the firmer baht, supported by strong orders from traditional markets and boosting the government’s confidence of meeting the full-year target of 5% growth in export value.
The double-digit growth in June after a 13.2% leap in May signals a brighter outlook for the second half, the Commerce Ministry said, adding that shipments to traditional markets were up 7-8%.
Pimchanok Vonkorpon, director-general of the ministry’s trade policy and strategy office, said exports in June rose 11.7% to US$20.3 billion (683 billion baht). June imports rose 13.7% to copy8.4 billion, giving Thailand a trade surplus of copy.9 billion.
“June exports rose because of growth in every major export market, with demand growing in line with the recovering global economy,” Ms Pimchanok said.
Export value has risen sharply since May despite the stronger baht making prices of Thai products, especially farm items, more expensive.
The baht has risen 6.1% this year to its highest level in nearly 26 months, making it the second-strongest currency in the region after the Korean won.
In the first half, exports rose by 7.8% to copy14 billion as imports gained 15% to reach copy07 billion.
As a result, Thailand recorded a trade surplus of $6.97 billion in the first six months, Ms Pimchanok said.
Exports, worth more than 60% of Thailand’s GDP, are just recovering after years of weakness.
The Commerce Ministry has forecast export growth of 5% this year after last year’s 0.5%, which was the first annual growth in four years.
June brought solid exports to major markets such as Japan, China and Asean, especially the emerging nations of Cambodia, Laos, Myanmar and Vietnam.
Shipments to the traditional markets of Japan, the US and the EU rose by 26.5%, 8.2% and 5.9%, Ms Pimchanok said.
Products whose exports shot up included rubber, sugar, fresh and canned fruits, and frozen and cooked chicken.
Industrial exports of computers, plastics and chemicals also rose.
Ms Pimchanok said exports should continue to rise through the rest of the year, supported by the recovering economies of Thailand’s big trading partners.
Weaker oil prices should also lower logistics costs, she said. But risks still lie ahead that need close monitoring.
“There are volatile exchange rates and possible protectionist policies from major export markets such as the US,” Ms Pimchanok said.
Chen Namchaisiri, chairman of the Federation of Thai Industries, said the baht at 33 to the US dollar is “too strong for the Thai export sector and we demand the government step in to do something to make it easier for Thai exporters to do their jobs”.
Source: http://www.bangkokpost.com/business/news/1291003/june-exports-defy-baht-jump-11-7-