Exports rose by 17.6% year-on-year in May, the slowest pace in seven months due to the contraction in the automobile industry caused by the Japanese disaster.

Export value totalled US$19.46 billion worth last month, up by 17.6% compared with increases of 24.6% in April and 30.9% in March.

In baht terms, export value was 580.05 billion baht, up 9.5% year-on-year.

Imports were worth $19.19 billion, up 33.8% and resulting in a trade surplus of $274 million.

Commerce Minister Porntiva Nakasai said automobile and parts exports fell 22.8% year-on-year in May.
Automobile shipments alone were down by 36.9%, but parts rose by 1.9%.

Blamed for the decline was the March 11 earthquake and tsunami, which hit the Japanese auto industry hard.
However, Ms Porntiva believes the Japanese economy will recover quickly, and Thailand will soon resume normal auto exports.

Overall exports were bolstered by a 58.8% increase in the value of farm shipments to $3.99 billion. Rice exports rose 99% in value and 103% in volume to 1.3 million tonnes. Rubber expanded 86.5%, while food exports rose by 27%.

May exports to Japan rose by 30.4%, to the US by 21.9%, to Europe by 20.7% and to China by 21.2%.

For the first five months of this year, exports totalled $93.9 billion, up 25.2% year-on-year for a trade surplus of $2.18 billion. In baht terms, exports totalled 2.83 trillion baht, up by 15.9%.

Sompop Manarungsan, president of the Panyapiwat Institute of Technology, said the slowdown in growth was in line with a decline in imports by China, which is trying to cool its economy and bring down a 5.5% inflation rate.

He predicts slower growth in exports over the next few months due to reduced international trade and lingering economic problems in the US.

Some EU countries are still suffering from public debt problems, while India is also facing high inflation of 9% despite several interest-rate increases.

Both Ms Porntiva and Dr Sompop expressed confidence that Thailand's full-year exports would show 15% growth to $224.6 billion or almost 7 trillion baht.

For exports under seven free trade agreements (FTAs), Thailand shipped $49.57 billion in the first five month, up 20.8% year-on-year, while imports rose 25.6% to $53.25 billion.

Despite a trade deficit of $3.68 billion under the FTAs, the Commerce Ministry believes these channels have helped the country to expand its market base.

Source : Bangkok Post