The FINANCIAL — Thailand’s exports recorded a sharp fall in February largely due to a slower-than-expected global economic recovery and lower global oil and farm product prices, according to the Ministry of Commerce.
Based on raw customs data, exports in February totaled $17.23 billion–a 6.14% on-year decline–while imports rose 1.47% on-year to $16.84 billion, permanent secretary to the Commerce Ministry Chutima Bunyapraphasara said on March 26.
“Thailand’s exports were pulled lower by a 12.5% drop in agriculture product and agro-industry shipments,” Ms. Chutima said, adding that a relatively strong baht currency also contributed to the weaker exports.
Rubber shipments continued to be a major drag, plunging 39.7%, which the ministry attributed to weak global demand and excess supply, according to Nasdaq.
Despite the continued fall in exports, Thailand posted a trade surplus of $390 million in February, an improvement from a $457 million deficit in January.
During the first two months of 2015, Thailand’s overseas shipments have fallen 4.82% year-over-year, while imports have dropped 6.69% on-year.
Nevertheless, Ms. Chutima is hopeful that exports will start to improve based on the increased imports of raw materials, which rose 12.7% in February.
Kasikorn Research Center said Thai shipments may start to pick up around the second half of 2015, when signals of an economic recovery in the country’s trading partners should be clearer, provided that global oil prices return to trade within a “more stable” range.
Thailand’s exports contracted 0.41% in 2014 and the commerce ministry has projected 2015 export growth at 4.0%.
Ahead of March 26 release, Commerce Minister Gen. Chatchai Sarikulya said the ministry will review the growth estimate after all data from the first quarter of 2015 is available.
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