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Published on September 22, 2007

Both exports and imports hit historic highs last month, with exports growing 17.9 per cent year on year to US$13.91 billion (Bt464 billion) and imports up 14 per cent to $13.14 billion. The official figures were provided yesterday by the Commerce Ministry.

Despite the slowdown of export growth in July, the robust performance in August has prompted the ministry to reaffirm the country's annual export target of $145.9 billion - 12.5 per cent above last year's good showing - based on significant export growth in the first half and expected growth in the remaining months.

The surprising dip in export growth to below 6 per cent in July had shaken confidence that the annual target was within reach.

"I am confident that the export target of 12.5 per cent will be achievable. The country will enjoy a big trade surplus for this year," Commerce Minister Krirk-krai Jirapaet said.

The ministry forecasts that exports for the rest of the year should exceed $12 billion or rise by an average of 4.7 per cent a month to ensure that the year's target will not be missed.

Exports in the first eight months jumped 16.9 per cent to $97.32 billion, against a 6.3-per-cent increase in imports to $90.83 billion, the Commerce Ministry said.

The August trade surplus of $770.6 million brought the total over the first eight months to $6.48 billion. Exports in the period accounted for 66.7 per cent of the target for the whole year.

Asked about a big difference in reported export growth between the Customs Department's 6 per cent and the ministry's 17.9 per cent, Krirk-krai said this was due to the former releasing a preliminary figure for 20 days, while the ministry had got the complete export record for the whole month.

Chavalit Sethameteekul, director-general of the Customs Department, said the re-export of two nuclear reactors - each worth about Bt10 billion - had also taken place in August. Moreover, several trade invoices were collected late in the month, so the actual export figures were significantly better than his previously announced 6-per-cent year-on-year growth, he added.

Exports in all sectors saw sharp growth last month, including 12.3 per cent in the agricultural and agro-industrial sector, 17.6 per cent in the industrial sector and 23.2 per cent in all the other sectors.

Rice exports jumped 38.3 per cent in volume and 47.7 per cent in value. Most industrial exports increased more than 15 per cent last month, including automobiles, construction materials, plastics, jewellery, cosmetics, medical products and printed goods.

Sales to the United States fell by 7.9 per cent, the fourth straight monthly decline due to the weakening economy there. Exports to the US were down 2.7 per cent in the first eight months, but the Department of Export Promotion still believes sales to that market

will turn in 3.8-per-cent growth this year.

Other traditional markets - Japan, Asean, and the European Union - still did well with exports up by 8.1, 17.3 and 20 per cent respectively, but were outshone by new markets. Exports soared 63.8 per cent to Eastern Europe, 59 per cent to Africa, 31 per cent to Latin America, 47 per cent to India, 39 per cent to the Middle East and 33 per cent to China.

Last month, imports rose in all sectors - 7.1 per cent in capital goods, 17.2 per cent in raw materials and semi-manufacturered materials, 25 per cent in consumption goods and 11.4 per cent in fuels.

 Petchanet Pratruangkrai

 The Nation