SCB forecasts over 4% export contraction
Thailand's export value is expected to contract by more than 4 per cent in 2015, following the 4.9 per cent contraction in the first eight months of this year, Siam Commercial Bank's research house said.
The Economic Intelligence Centre said the forecast was based on persistently low oil prices and low agricultural commodity prices. Meanwhile, China's sharper-than-expected economic slowdown, stirring concerns on recovery in the United States and the euro zone, directly and indirectly affects Thai exports. Thailand also lost privileges for export to Europe. Exacerbating the situation is the relocation of some businesses as well as structural problems of electronics manufacturing in Thailand.
According to the Commerce Ministry's data, Thailand's exports continued to slide in August, when the shipment value fell by 6.69 per cent from the same period last year to US$17.7 billion. From January to August, the cumulative export value contracted by 4.92 per cent to $142.7 billion.
Imports also declined in August, down by 4.77 per cent to $16.95 billion on year. In the first eight months, imports plunged by 8.18 per cent to $137.78 billion.
Despite the weakening of the Thai baht against US dollar, export and import value in terms of Thai baht also dropped in August by 0.65 per cent and 2.71 per cent, respectively. The eight-month contraction was 2.90 per cent and 6.19 per cent, respectively.
