Optimism building for export recovery
Thailand’s pandemic-driven decline in exports continued to narrow during the past few months, while trade surplus grew, prompting the Ministry of Commerce to say it signals a faster recovery than initially forecast.
Exports have been steadily increasing over the past three or four months, which indicates that business is picking up. Exports are the primary driver of Thailand’s economy.
“Despite the contraction, the September figures remained a good sign, as higher shipments stemmed from product items in real sectors” said Pimchanok Vonkorpon, Director-General of the Trade Policy and Strategy Office at the Ministry of Commerce.
“Considering the deceleration of negative exports, this represents businesses’ resilience both on the export and import sides in a challenging period and is a good signal for the Thai economy compared to the past,” Pimchanok said.
Thailand is the only net food exporter in Asia. Agricultural and agro-industrial goods were among the best performing exports, posting a 3.1 percent year-on-year increase and bringing in $3.2 billion in September. Exports of fresh, chilled, frozen, canned and processed fruits and vegetables rose by over 50 percent year-on-year.
Pimchanok said that the value of Thai exports in many markets improved from August, reflecting a gradual recovery in demand among trading partners after relaxing Covid-19 measures and introducing economic stimulus measures.
Exports to the United States grew by 19.7 percent in September, while those to China increased by 6.9 percent.
The government is optimistic that exports will break into positive growth in 2021.
Photo courtesy of https://thainews.prd.go.th/en/news/detail/TCATG190718134714020