Economists not so bullish on export outlook

 "Though the exports in May are better than expected, the volume destined to major European destinations like Spain and Italy clearly declined. Exporters will need to closely monitor economic movements and other risk factors in the euro zone," the bank's research unit said.  

 In the month, exports to key markets expanded compared to the same period last year: 13.4 per cent in Asean, 22.3 per cent in China, 10.9 per cent in the US, 4.4 per cent in Europe and 5 per cent in Japan.

 Both SCB and Tisco Securities agreed that the May export value beat their expectation. Importantly, exports to the entire Europe and Japan expanded for the first time in eight months, thanks mainly to the 11 per cent year-on-year growth in industrial products - also the first increase since October floods. In the month, export value of the automotive sector expanded by 112 per cent on year.
 On stark contrast, agricultural export value dropped by 15.1 per cent on year, due to lower crop prices. Para rubber price was down 25 per cent on year and plunged Thailand's para export by 27 per cent in the month. Rice export value in May also dropped 29 per cent on year, due to lower export volume.
  In May, Thailand's export value expanded 7.7 per cent on year to US$20.9 billion, against the 3.7 per cent contraction in May.
 "As the manufacturing sector is expected to resume normal capacity in June, we expect this to further boost export. We still maintain the view that Thailand's export would expand by 9.6 per cent this year," Tisco Securities said.