Commerce Ministry: Thai export grows despite trade deficit

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BANGKOK, 25 June 2012– The Ministry of Commerce views an increase in Thailand’s export in the month of May as a positive sign despite a trade deficit caused by massive imports of machinery. 

Deputy Minister of Commerce Poom Sarapol declared that the value of Thailand’s export increased in May by 7.68 percent to stand at 20.9 billion US dollars, which is a positive sign for the Thai export sector. However, he admitted the fact that there was still a deficit in the trade balance between export and import by 1.7 billion US dollars in May. Trade balance in the first 5 months of this year also recorded a deficit worth 9.7 billion US dollars.

The main reason behind the deficit is that Thai entrepreneurs have been importing new machinery to replace old units that were damaged by the flood last year. The Deputy Minister believed that export will continue to grow in June and through the rest of the year, with the export value hovering above 20 billion dollars each month, while a trade surplus will be achieved again by year’s end.

Mr. Poom also said that Prime Minister Yingluck Shinawatra will chair a meeting on June 30 regarding Thailand’s export in a bid to assess the export situation and provide support for entrepreneurs. He added that the Ministry of Commerce remains confident in its ability to maintain the export growth at 15 percent as targeted.