Thailand’s exports declined for the 10th consecutive month in July, falling at a higher rate than expected due to sluggish global demand and a drop in global commodity prices.
According to data released by the Ministry of Commerce, the export value in July was 22.14 billion USD, a year-on-year decline of 6.2% and down 10% from June. The country’s imports contracted by 11.1% to 24.1 billion USD, resulting in a trade deficit of 1.97 billion USD.
Exports in the first seven months of this year fell 5.5% to 163 billion USD while imports dropped 4.7% to 172 billion USD, resulting in a trade deficit of 9 billion USD.
Keerati Rushchano, Permanent Secretary of the Ministry of Commerce, said weak global demand has been exacerbated by high interest rates and tougher lending practices, leading to a slowdown in consumer spending. However, he said the ministry has not yet adjusted its growth target of 1-2% because it is considered a feasible target.
He held that the export performance in July could also be attributed to a high base in July last year when exports were worth 23.6 billion USD.
The July figures should be considered relatively high compared with other countries as there are several international headwinds, including the global economic slowdown, a slow Chinese recovery and geopolitical conflicts, Keerati said.
Regarding the export outlook for the remainder of this year, he said the ministry expects a gradual recovery in the coming months./.
Source: Vietnam News Agency