Exports fell 6.5% year-on-year in March, the fourth decline in five months, as factories struggled to resume full production after last year's flood crisis.

Shipments fell in nearly all product items affected by last year's floods, with March exports valued at US$19.86 billion.

Overseas sales decreased in all markets except the United States, Asean, China and South Korea. Shipments to Europe fell 15.3% and to Japan, 3.6%. Exports to the US rose 5.3% and to China, 1.1%.

Shipments of agricultural products (mainly rice, rubber and tapioca) fell 21.3% to $3.29 billion, while industrial exports (particularly electrical appliances, jewellery and furniture) fell 7.4% to $12.78 billion. Automotive and parts began to recover, up 6.7%.

According to Deputy Commerce Minister Poom Sarapol, imports rose 25.6% in March from a year earlier to $24.45 billion, compared with an 8.3% gain in February, as the private sector sped imports of machinery, raw materials and capital goods to rehab flood-hit factories. Fuel imports also rose as global prices surged.

The country's trade deficit as a result hit a record high of $4.58 billion last month, compared with a $530-million surplus in February.

For the first quarter, Thailand's exports fetched $54.64 billion, down 3.9% from the same quarter last year, but imports surged 10.5% to $59.82 billion, causing a trade deficit of $5.18 billion.

"We believe that for the entire year Thailand will not run a trade deficit," Mr Poom said. "We estimate that Thai shipments will resume growth in the second quarter as most flood-hit factories get back to producing at full capacity."

He said the government would try to boost Thai exports to Asean to offset weakening purchasing power in the crisis-hit European Union.

"We still maintain an export growth target of 15% this year to $263 billion, as the International Monetary Fund (IMF) itself forecasts that the world economy will pick up from mid-year despite the earlier slowdown."

But Somphob Manarungsan, an economist and rector at the Panyapiwat Institute of Technology, called 15% growth unlikely, as last year's exports were relatively high. Exports last year totalled $210 billion, up 17.2%.

Source: Bangkok Post