Thai exports shrink two years in row

[webfact]

Thai exports shrink two years in row
By Digital Content



BANGKOK, Jan 28 -- Thailand's Department of International Trade Promotion reported that Thai exports shrank by 0.41 per cent in 2014 contracing for the second consecutive year.

The department hopes the value will rise by 4 per cent this year.

Nuntawan Sakuntanaga, director-general, said the export value in December amounted to US$18.79 billion, rising 1.90 per cent year-on-year, but could not create an export increase throughout the year.

In 2014, exports shrank 0.41 per cent compared with a 0.32 per cent contraction in 2013.

Ms Nuntawan said that exports grew well in December thanks to farm products, which increased by 0.8 per cent.

The export of rice was historically high at 1.4 million tons and soared by 113 per cent, while sugar exports increased 124 per cent.

The export of industrial products expanded by 4.5 per cent including automobiles, auto parts, machinery, plastic pellets and plastic products.

Throughout last year the export of farm products declined by 2.5 per cent while industrial products increased by 1.1 per cent.

Ms Nuntawan said although the International Monetary Fund expected slower economic growth in many countries, the Ministry of Commerce predicted Thai export would grow 4 per cent this year.

It is believed that the quantitative easing measure in the Eurozone that will inject 60 billion euros per month into the economic system would weaken the value of the euro currency immediately, boosting European economies, creating more jobs there and benefiting Thai exports.

She expects Thai exports to the Eurozone will expand by 3 per cent this year.(MCOT online news)


-- TNA 2015-01-28

[Diplomatico]

Ms Nuntawan said although the International Monetary Fund expected slower economic growth in many countries, the Ministry of Commerce Department of Wishful Thinking predicted Thai export would grow 4 per cent this year.

[chainarong]

The trouble with Thailand releasing figures that there is so many coming out each week that I get the idea that the feel good or happiness factor is continuous in Thailand, like China how rubbery and how transparent are they, China released a set one year (2011) they had exports skyrocketing until someone pointed out that they counted twice once to the load out and once in the hold, that knocked back the average without as much as an apology, in other words they would have left the original figure stand if they hadn't been caught out, that's what happens when corruption and transparency go hand in hand , who can you believe.

[NongKhaiKid]

Ms Nuntawan said although the International Monetary Fund expected slower economic growth in many countries, the Ministry of Commerce Department of Wishful Thinking predicted Thai export would grow 4 per cent this year.

In another thread it says exports will become more expensive due to the strengthening Baht, fluctuating currencies and slow growth around the world.

[berybert]

Altho Thai exports have shrunk for the past two years, they have risen for the last 3 years.

[Diplomatico]

Altho Thai exports have shrunk for the past two years, they have risen for the last 3 years.

With a statement like that, you have a bright future in the Thai Ministry of Commerce.

[berybert]

Altho Thai exports have shrunk for the past two years, they have risen for the last 3 years.

With a statement like that, you have a bright future in the Thai Ministry of Commerce.

I can draw pictures too.

[DLock]

"The department hopes the value will rise by 4 per cent this year."

Nothing like a well developed plan, strategies, incentives and a relaxing of tariffs won't fix.

But "hope"?

No of these tards would survive 1 week in a real company in the real world. They are completely incompetent and don not deserve their position in life.

[jalansanitwong]

Thailand loves exporting but hates importing. Exporting is easy but importing? Import Taxes here are insane.

I know a Korean who got into a fight with Thai customs officials because they wanted 100,000 baht to release one box of cheap cosmetics.

Thailand is notorious for its corrupt customs officials.

Incidents with Thai officials happen all the time here.

As for free trade.....Australia has had FTA with Thailand for years but oz cheese and butter are still the same ridiculous price.

[Daniel Boon]

Time to devalue the Baht

[jayjayjayjay]

I have taken away my 300m in business with Thailand as of Dec '14.. Gone

[rickirs]

Exports are measured in terms of market value, not tonnage or volume. So while Thailand may actually increase export of agricultural products like rice and rubber in terms of tonnage, it may realize a decrease in total value due to drop in market prices. In 2014 Thailand became again the world's top rice exporter in tonnage, but its profit margin was the lowest of the ASEAN-5 nations. Its rubber now is selling on the world market for less than the cost of production.

The most telling export will be autos as they are the highest value product. The oil price drop led to a 29.5% decrease in Thailand’s exports of cars and auto parts to its major markets such as Australia, Indonesia and the Middle East. In contrast Thailand now hopes that the "Euro 5 standard" under the Eco Car Phase II programme which would enable the auto manufacturers to export to Japan and Europe. But with Europe and Japan under domestic stimulus programs, they may not save Thailand's auto export business.

There are a lot of unknowns facing Thailand export performance for 2015. "Hope" may be its only reliable option.

[paddyjenkins]

If export shrinkage continues and oil bounces then the current account deteriorates and then the door opens to a weaker baht...not a devaluation as some idiot suggested in an earlier post, but a weakening.

[Ozziepat]

It should be obvious that Thai exports will become relatively more expensive if the Baht strengthens with respect to the euro. It should also be obvious that the BOT is deliberately propping up the Baht for opaque reasons. Something has to give.

/end-facts

Happy Talk will now continue uninterrupted.

[konying]

Ms Nuntawan said although the International Monetary Fund expected slower economic growth in many countries, the Ministry of Commerce Department of Wishful Thinking predicted Thai export would grow 4 per cent this year.

Have not you heard few days ago that devaluing euro is good for thai exporters, as euro importers will start to buy more