The FINANCIAL — Thailand’s trade surplus continued in August even as a decline in exports accelerated, the Commerce Ministry said on September 28, according to Nasdaq.
The ministry reported that the country’s trade surplus totaled $721 million in August, easing slightly from the $770- million record in July. For the first eight months of 2015, Thailand has recorded $4.96 billion in trade surplus.
Thailand’s customs-basis exports fell for the eighth consecutive month in August by 6.69% compared to the same time last year, to $17.66 billion. The August rate of contraction in exports increased considerably from the 3.56% contraction seen in July.
Somkiat Triratpan, director of the ministry’s Trade and Strategy Bureau, said the larger fall in August exports could be attributed to a 44% year-over-year decline in oil-related product shipments–in line with low global oil prices.
From January to August, Thailand’s overseas shipments fell 4.92% on-year to $142.74 billion.
The country’s imports shrank 4.77% year-on-year in August to $16.94 billion, slowing down significantly from the 12.73% decline in July. During the first eight months of this year, Thailand’s import value contracted 8.18% from last year to $137.78 billion.
Weiwen Ng, an economist at ANZ Research, said Thailand’s latest trade data “portends downside risk” for the August current account print, which will likely become narrower, as he expects the country’s tourism-related export service receipts to suffer the aftermath of the deadly Bangkok bombing in August.
“For Thailand, an export-led recovery is clearly unlikely, especially with external demand sluggish,” Mr. Ng said in an email.
The Commerce Ministry has projected that the country’s exports will contract 3% this year.
Discussion about this post