Euro crisis pressures Thailand's export in June
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Thailand witnessed a contraction in monthly export, when the value in June fell 2.5 per cent from the same period last year to US$20 billion as the euro crisis pressures regional and global demand.
The Commerce Ministry's latest data showed that in baht term, at Bt616.5 billion, the export value dropped 0.69 per cent on year. In the month, export to 15 European nations dropped by 16.1 per cent while export to the US increased by 5 per cent.
Thailand first felt the pinch of the euro crisis in April when exports contracted 3.7 per cent, before recovering with a 7.7 per cent growth in May.
The poor monthly figures in June, particularly against the ministry's annualised growth target of 15 per cent, resulted in a 1.66 per cent contraction in export value in the first six months of this year. The value was US$112.62 billion. In baht term, at Bt3.47 trillion, it showed a 0.52 per cent increase.
The ministry attributed the monthly contraction to the intensifying debt crisis in the euro zone, which dampened export-oriented manufacturing in several countries which ordered raw materials from Thailand. These countries included Japan, South Asia, South Korea, Taiwan and Russia.
Europe accounts for only 10 per cent of Thailand's total exports.
In June, Thailand's exports declined sharply in the agriculture sector, contracting by 19.8 per cent led by the 49.2 per cent slump in rice export and 31.4 per cent fall in rubber export.
Demand for industrial goods rose by only 1.9 per cent. While vehicles and parts showed an increase of 21.3 per cent, paper and packaging products suffered from the steepest decline of 73.2 per cent.
In the first six months, exports of agricultural products contracted by 9.1 per cent, while that of industrial goods dropped 3.6 per cent.
