US Markets

Thai July exports fall 11.37% y/y, smaller drop than forecast

Credit: REUTERS/ATHIT PERAWONGMETHA

Thailand's exports in July dropped by a smaller-than-expected 11.37% from a year earlier, with the U.S. shipments jumping, while most markets remained under pressure from the impact of the coronavirus pandemic, the commerce ministry said on Monday.

* July exports show signs of recovery - ministry

* U.S. shipments jump 17.8% y/y but China's falls 2.7%

* Ministry keeps export forecast at 8%-9% fall this year (Adds detail)

By Kitiphong Thaichareon and Orathai Sriring

BANGKOK, Aug 24 (Reuters) - Thailand's exports in July dropped by a smaller-than-expected 11.37% from a year earlier, with the U.S. shipments jumping, while most markets remained under pressure from the impact of the coronavirus pandemic, the commerce ministry said on Monday.

The fall compared with a Reuters poll forecast for a decline of 17.8% in exports, and against June's 23.17% slide.

The ministry still expects exports to fall by 8%-9% this year, Pimchanok Vonkorpon, head of the ministry's Trade Policy and Strategy Office, told a briefing.

"Overall exports recovered with a check-mark shape. We are hoping there will not be more lockdowns in other countries which will disrupt trade," she said.

Shipments of cars and car parts declined 30.9% in July from a year earlier after June's 43.2% plunge. Gold exports rose 37% year-on-year after a 86% fall in the previous month.

Exports to most markets were lower in July, with ones to China down 2.7% year-on-year, but those to the United States jumped 17.8%, helped by electronics and rubber products, the ministry said.

While a rise in exports to the United States, accounting for 14.5% of the total in January-July, the largest share, could be scrutinised over trading practices, several shipments, including semi-conductors, were from U.S. companies in Thailand, Pimchanok said.

Last month, the central bank said Thailand had not intervened in the baht for any competitive trade advantage following a media report that Thailand could be added to a U.S. watch list for currency manipulation.

In January-July, exports, a key driver of Thai growth, contracted 7.72% from a year earlier, while imports fell 14.69%.

Thailand recorded a trade surplus of $3.34 billion in July and $14 billion in the first seven months of this year.

( Editing by Ed Davies) ((orathai.sriring@thomsonreuters.com; +662 0802309; Reuters Messaging: orathai.sriring.thomsonreuters.com@reuters.net)) Keywords: THAILAND ECONOMY/TRADEFIGURES (UPDATE 1)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More