Shock rise in Thai exports

Defying expectations, Thai exports in March unexpectedly rose by 4.2%, with a total value of around 690 billion baht (22.4 billion US dollars) year-on-year, the biggest expansion in 8 months.

The Commerce Ministry reported today that even excluding items like gold, oil, and weaponry, exports expanded 2.12%, For the first quarter of 2020, exports grew 0.9%. Excluding gold, oil and weaponry, they were up 1.1%.

Lower global oil prices battered by a plunge in travel due to the Covid-19 pandemic, suppressed exports of oil-related products, which accounted for 8.2% of March’s total exports.

“Electronic products such as computers and parts dominated the export rebound in the real sector and registered positive growth for a fourth consecutive month. Electronic products showed signs of recovery across major markets such as the United States, Hong Kong, China, Singapore, Taiwan, Japan, and South Korea.”

“Moreover, exports of agricultural and agro-industrial products such as fruits and vegetables, frozen and processed chicken, sugar and pet food have continuously expanded in response to rising demand in foods and other essential products. However in March, shipments of agricultural and agro-industrial products fell 1.1% including rubber (-24.7%), rice (-13.2%), cassava products (-13.1%) and canned and processed seafood products (-6%).”

Other items that performed well include sugar (+17.5%), fresh, frozen and processed fruits and vegetables (+15.8%), fresh, frozen and processed chicken (+7.5%) and pet food (+11.5%).

Exports of industrial products expanded 6.4% in March from the same month last year:

• gold (+215.2%)
• aircraft parts and accessories (+1,129.3%)
• computers and parts (+17.6%)
• steel and steel products (+29.5%)
• air conditioners (+8.1%)
• vehicles and parts (+1,263.2%)

Exports of some products declined, including automobiles and parts (-28.7%), oil-related products (-17.4%), precious stones and jewellery ex-gold (-25.3%) and electric circuits (-4.3%).

SOURCE: Bangkok Post