Thai exports fall less than forecast in June, seen improving

BANGKOK  – Thai exports shrank for a ninth consecutive month in June, albeit at a smaller rate than expected, as global demand remains sluggish, but the commerce ministry said on Wednesday it still expects some growth for the full year.

Customs-based exports, a key driver of Thailand’s economy, dropped 6.4 percent in June from the same month a year earlier, beating analysts’ average estimated decline of 7.3 percent in a Reuters poll. Exports rose 2 percent from May.

“The economic situation of trading partners remained subdued due to pressure from high inflation rates and elevated interest rates, which led to restrained production and consumption,” the ministry said in a statement.

Thailand’s export decline, however, has been less than that of other exporting countries, Keerati Rushchano, the ministry’s permanent secretary, told a press briefing.

The ministry is targeting annual export growth of 1 percent for 2023, he said. Its earlier target was for a 1 percent to 2 percent export rise.

“We’ll try every way to make export figures meet the target, although it’s difficult,” he said.

Chaichan Chareonsuk, chairman of the Thai National Shippers’ Council, said exports could show some annual growth from July as some sectors were still performing well.

Exports of cars and parts increased 7.2 percent in June year-on-year and circuit boards rose 5.3 percent, while shipments of computers, rubber and oil declined, the ministry said.

Rice export volumes dropped 25.4 percent on-year to 572,115 metric tons in June, it said.

Exports to the United States dropped 4.8 percent on-year in June, while shipments to Southeast Asian countries slumped 20 percent. Exports to Japan rose 2.6% and shipments to China increased 4.5 percent.

Thailand posted a trade surplus of $58 million in June versus a forecast deficit of $900 million, with imports showing a 10.3 percent on-year decline.

In the first half of 2023, exports contracted 5.4 percent from a year earlier, imports fell 3.5 percent and the trade deficit stood at $6.3 billion.

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