Thai exports slump to lowest levels in recorded in recent years
Thailand’s exports slumped at a record pace in May and could fall by nearly a fifth this year as global demand remains weak. Exports from Thailand plunged 26.6% from a year earlier to $11.7 billion which has been their biggest monthly drop ever. Imports slid 34.7% to $9.3 billion producing a trade surplus of $2.4 billion for May.
The contraction would exceed 20% if new export stimulus measures fail to win cabinet approval, warned Siripol Yodmuangcharoen, the Commerce Ministry’s permanent secretary. Agricultural and agro-industrial shipments fell 26.9% to $1.94 billion as customers delayed purchases and gained more price bargaining power amid rising competition.
Rice shipments declined 15.9% to 735,048 tonnes valued at $406 million, down 38.1%. Rubber volume fell 19.6% to 169,162 tonnes worth $229 million down by 21.7%.
The main reason attributed for such drop was declining demand in key overseas markets and increased competition. The slump came despite Thailand’s export to new markets including Africa and Middle East expanding by 17.8%.
In light of ongoing fall, the economic growth target for whole of 2009 was revised by the government forecasting that the economy would contract by 15-19% from its earlier forecast growth of between 0 and 3%.