Thai export value in March expanded by 9.2%YOY. The across-the-board growth was seen in more sectors, and in almost all destinations, except exports of cars and parts to the Middle East.
Driving the improvement included exports of oil-related products and major manufacturing sectors, especially electronics and electrical appliances, which hit record highs in over 4 years.
Meanwhile, import value continued to expand by 10.3%YOY, on the back of 71.9%YOY growth in import of fuels, 5.8%YOY growth in import of capital goods (excluding aircrafts and ships), along with increase in imports of computers and parts, and machineries and parts.
EIC assesses that first quarter’s 4.9%YOY growth of Thai export value was mainly thanks to development in oil price and recovery in global manufacturing, which bolstered oil-related exports and major manufacturing exports.
Nevertheless, EIC projects that export value will grow by only 1.5% in 2017. This is firstly because oil price is expected to normalize beginning in the second quarter.
Second, trade protectionism policies by the United States are starting to take effect, after the US President ordered investigation into and measures to cut the country’s trade deficit with Thailand, among the 16 trading partners targeted.
EIC expects the effects of such trade policies to be felt in the third quarter onward. Products at risk include
1) those with GSP, which together account for 23.2% of total Thai export to the US, such as car parts, processed food, and rubber gloves;
2) those contributing significantly to the US trade deficit, including computers and parts, electronic parts, rubber products, gems and jewelries; and
3) agricultural products with government supports, such as rice.
- EIC expects the value of imports to expand by 3.5% YOY in 2017. Contributing to import growth will include imports of fuels, which may start to level off in the second quarter, and investment by the manufacturing sectors, which is expected to be soft this year. Notably, it remains to be seen if this month’s positive growth in investment-led imports of machineries and parts will continue into the next months. In addition, imports of computers and parts capital goods may increase by more than expected, given the steady growth in this group of exports.
Author: Pimnipa Booasang
Thailand’s four challenges : Debt, inequality, plastics and climate change
Thais tended to get into debt faster, for longer and for higher amounts. Indebtedness starts as soon as they begin to work at age 25 and can increase until 56 years old.
Bank of Thailand Governor Veerathai Santiprabhob, in his speech entitled “Formulating for the Future of Corporate Governance”, delivered at the Finance and Beyond National Director Conference 2019 in Bangkok (July 24th), said Thailand faces four challenges that require good governance in businesses to address.(more…)
Exports contracted by -2.1%YOY in June, or -8.7% without Gold
With the exception of military arms and weapons reshipment to the USA in February, Thai exports value has shrunk continuously for the past 8 months, and the first half of 2019 showing a decline of -4.4%YOY.
Thai exports could drop 0.6% in 2019
The University of the Thai Chamber of Commerce predicts that Thai exports in 2019 will drop 0.6% year on year, the first contraction in four years.
Dr. Aat Pisanwanich, Director of Center for International Trade Studies (CITS) of UTCC, said that total Thai exports this year are expected to reach USD251.338 billion, 0.64% less than last year and the first contraction in four years.(more…)
Thailand Ecommerce Market: Shooting For Success
At present, the Thai ecommerce market is valued at USD 3.5 billion. According to a Google Temasek study, Thailand’s e-commerce...
Aspire Set to Become First SME Neobank in Southeast Asia with US$32.5 Million Raise
The recent financing has been led by Mass-Mutual Ventures Southeast Asia with participation from Silicon Valley’s Arc Labs and existing...
How is Thailand Bringing Technology to the Table?
In Asia, a country like Thailand has taken the initiative to implement agricultural biotechnology in its industry. The country has...