Thailand: Exports plunge in July
August 31, 2012
In July, exports contracted 9.2% over the same month a year ago to USD 19.5 billion, which followed the 4.2% decline recorded in June. The reading exceeded market expectations that had exports declining 5.0%. The contraction mainly reflected a deterioration in shipments of manufactured goods, particularly of electronics. In addition, overseas sales of agricultural products contracted over the previous month. That said, imports accelerated from a 2.6% increase in June to a 13.7% expansion in July (USD 21.3 billion). The acceleration reflected faster growth in imports of consumer and capital goods. As a result, the trade balance incurred a deficit of USD 1.8 billion in July, which contrasted the USD 2.8 billion surplus recorded in the same month last year. The Ministry of Commerce expects exports to grow 9% (previously reported: 15%), while the National Economic and Social Development Board cut its projections for this year and now expects exports to grow 7.3%, below its previous 15.1% estimate.
Author: Ricardo Aceves, Senior Economist