Export profit could exceed government target
According to Trade Minister Jurin Laksanawisit, after a strong performance in the first five months of 2022, export growth is expected to exceed the government’s forecast of 4-5% growth this year.
Mr Jurin said Thai exports are expected to continue growing and the ministry is confident the second half will bring strong results.
He cited supportive factors such as stable Covid-19 infections, higher global food demand and rising farm prices.
The tourism sector, which has started to recover in many countries, should also benefit Thai exports alongside an increasing volume of ships and containers, Mr Jurin said.
“Nevertheless, risks of inflation and lower purchasing power of trading partners as a result of the Russia-Ukraine war can put pressure on future exports and need to be monitored,” he said.
The ministry reported Friday that the customs value of Thailand’s exports rose 10.5% year on year to $25.5 billion in May, while imports rose 24.2% to $27.4 billion are, resulting in a trade deficit of $1.87 billion.
Export growth topped the 9.9% increase in April but was down from the 19.5% gain in March, the highest since records began in 1991.
Thailand’s real sector exports (excluding gold, oil-related products and arms) rose 11.1% yoy in May, following growth of 6.9% and 8.9% in April and March, respectively.
In the first five months of 2022, Thai exports grew 12.9% to $123 billion, while imports rose 20.2% to $127 billion, resulting in a trade deficit of $4.72 billion -dollar led.
“Exports continue to be the key driver for the growth of the Thai economy. Booming exports of agricultural and agro-industrial products reflect Thailand’s role as the ‘cuisine of the world’ as global food demand soars,” Mr Jurin said.
“Exports of manufactured products grew in line with world production. The global Manufacturing Purchasing Managers’ Index remained above 50 for the 23rd straight month on rising consumer purchase orders and investment in many regions, particularly the US, EU and Japan. This indicated that despite the impact of the ongoing Russia-Ukraine conflict, inflation concerns and lockdowns in some Chinese cities, demand from key trading partners has continued to rise.”