Exports face uphill battle in first quarter
Weak January data signal further slippage
Exports are highly likely to see a contraction of 2% in the first quarter after negative signs in January, says the Thai National Shippers’ Council (TNSC).
Thai export prospects are still floundering with the first half expected to see flat growth, president Nopporn Thepsittha said yesterday.
Thailand reported exports contracted by 3.46% in January to US$17.2 billion, the biggest fall since last August.
In baht terms, the values contracted 2.34% to 563 billion baht.
Last December exports rose by 1.9% year-on-year to $18.8 billion, but the growth was not large enough for full-year shipments to escape contraction.
Figures showed a 2014 decline of 0.41% to $228 billion, the second straight year exports fell after a 0.3% dip in 2013.
The fall in exports was attributed largely to lower agricultural and petroleum products as oil prices tumbled.
Farm exports contracted by 13% yearon-year in January to $2.56 billion. Rubber, sugar and rice exports dropped significantly, while food exports grew modestly by 1.7%.
Rubber shipments fell by 7.6% to 302,300 tonnes, with the value down 40.6% to $427 million. Sugar exports dropped by 7.5% to 357,654 tonnes, with the value down 12.6% to $145 million.
Rice shipments declined 12.6% to 608,504 tonnes, with the value down 13% to $333 million as several countries switched to cheaper rice from other producers.
Manufactured exports rose by only 0.6% year-on-year to $13.7 billion. Products that performed well included integrated circuits, up 21% year-on-year in January, cars were up 11.7%, steel up 9% and computers and parts up 3.7%.
Manufactured exports that underperformed include petroleum products, down 28%, chemicals down 22% and plastics down 10.7%, all affected by the fall in global oil prices.
“Given that exports dipped in both baht and dollar terms, this indicates Thai exports remain poor due mainly to the fragile economies of major trading partners, particularly China and Europe,” Mr Nopporn said.