Thailand: Trade surplus widens in June amid slower imports
July 29, 2011
Exports slowed in the wake of the European debt crisis and the strengthening of the bath. In June, exports expanded 16.4% over the same month last year to reach USD 20.8 billion. The expansion represented a slowdown compared to the 17.3% increase observed in May, but was broadly in line with market expectations of a 16.7% rise. However, shipments to Japan accelerated from a 30.4% year-on-year expansion in May to growth of 38.0% in June, as the Japanese automobile sector rebounds strongly from the production slump in the wake of the March disasters. Meanwhile, imports slowed from a 34.4% expansion in May to a 23.5% increase in June (USD 18.9 billion), driving the trade balance to a surplus of USD 1.9 billion, which was well above the surplus of USD 274 million registered in May. The Central Bank expects overseas shipments to expand 20.4% this year before slowing to 12.4% in 2012.
Author: Ricardo Aceves, Senior Economist