Thai exports in January contracted by 6.03 per cent year-on-year with the total value of over US$15.7 billion owing to Thailand’s 2011 mega-flood and sluggish demand in Thailand’s key markets --- the US, Japan and the European Union, according to the Ministry of Commerce.

Deputy Commerce Minister Poom Sarapol told a news briefing on Thursday that the falling exports were attributed to the impact of the country’s floods late last year and the sluggish demand in the country’s main mature markets which have not yet fully recovered from the economic crisis.

Exports in agricultural and agro-industrial products shrank by 4.6 per cent—including rice with a 39.8 per cent decrease, rubber with a 20.6 per cent drop as well as frozen and processed prawns declining 18.1 per cent.

Similarly, industrial goods dropped 13.5 per cent, particularly electronics with a 27.1 per cent drop, electrical appliances with a decrease of 17.5 per cent and 12.1 per cent decline in automobiles.

Meanwhile, imports in the first month of this year exceeded $16.8 billion, contracting by 4.2 per cent, involving mainly capital goods and raw materials.

In consequence, Thailand posted a trade deficit of some $1.1 billion.

Despite the contraction, the commerce ministry projected that the exports in the coming months would improve, Mr Poom said, adding that the ministry still keeps its target of this year’s overall export expansion at 15 per cent.

Source: MCOT online news