Thailand's export grows 9.9％ to six-year high in 2017

By APD writer Chen Jiabao

**BANGKOK, Jan.30 (APD) ** -- Thailand's exports leaped 9.9% in 2017, hitting a six-year-high record and the growth will slow down in 2018, the Commerce Ministry said announced recently.

Pimchanok Vonkorpon, director of the Commerce Ministry’s General Trade Policy and Strategy Office, said Thai exports continue to grow steadily for the past 10 months last year with export in December growing 8.6% worth US$19,741 million, while imports also increasing 16.6% worth US$20,019 million, a trade deficit of US$278 million.

Exports for the full year in 2017 showed the highest growth in six years at 9.9% amounted to US 236,694 million, a trade surplus of US 13,930 million, she said.

The high growth was attributed to economic recovery of Thailand’s major trading countries, and satisfactory growth in Thai farming and agro-industrial products, she said.

Looking ahead further into the first quarter of 2018, a continuing global economic recovery should be the main driving force for Thai outbound trade, but its pace will likely slow down due to high 2017 base, Kasikorn research center, a Thai think tank said.

In particular, shipments of petroleum-related products have begun to lose their steam since late in 2017.

Attention should also be given to other factors pressuring certain export categories previously enjoying high growth in certain markets, e.g., the delayed renewal of the US Generalized System of Preferences (GSP) benefits to Thailand, and Vietnam’s decision to issue a decree that sets out conditions for the manufacture, trade and importation of automobiles, effective January 1, 2018.

Kasikorn Research projects that Thailand’s total export and import values over 2018 should rise 4.5 percent and 8.0 percent, respectively.

However, over the remainder of the year, increased monitoring will be needed toward issues such as the renewal of GSP benefits, US trade protectionism and movements in the Thai Baht that are likely to be affected by greenback volatility, given external and domestic situations vis-à-vis the US, amid Thailand’s strong economic fundamental with a relatively high current account surplus at around 9 percent of GDP in 2018.

(ASIA PACIFIC DAILY)