By Warangkana Chomchuen
BANGKOK–Thailand’s exports contracted 1% in November due to a sharp drop in oil and rubber shipments overseas, hit by the slump in oil prices and weak rubber demand, the Commerce Ministry said Friday.
Trade balance swung to a deficit of $78 million in the month, compared with a surplus of $31.5 million in October, the ministry reported.
Oil shipments fell by about a third in November, while rubber exports were down by 43% as China, the largest rubber importer from Thailand, slowed its purchase of the commodity due to high stockpiles, said Nuntawan Sakuntanaga, director-general of the ministry’s International Trade Promotion Department.
Exports to Japan and Europe, Thailand’s key markets, dropped 10.7% and 5.2%, respectively, as their economic recovery remained fragile and the weak yen dampened purchasing power, Ms. Nuntawan said.
Thai exports for the entire year are teetering between zero growth and a contraction.
“If the exports value in December reaches $19.3 billion, we will see flat growth. If it comes out to $19 billion, we will see a 0.1% contraction,” she said at press briefing.
The U.S. is expected to provide a brighter spot for Thai shippers. The U.S. economic recovery is a boon for the exports of computers, machinery, vehicles and parts, the ministry said.
Imports continued to fall in November, down 3.46%. The imports of energy, capital and transportation sectors were lower as investment in the country hasn’t fully recovered from months of political crisis that undermined the economy, the ministry reported.
However, imports of raw materials and consumer products expanded 8.6% and 1.1%, respectively, following the improvement of domestic consumption, it said.
Challenges for Thai export growth in 2015 include the decline in oil prices, Japan’s economy and low prices of agricultural products and shrimps, Ms. Nuntawan said.
On Friday, the Bank of Thailand cut its export estimate for 2015 to 1% from 4%.
Write to Warangkana Chomchuen at [email protected]
