Export value contracted by 11.37 per cent year-on-year in July, compared to the 23 per cent drop in June, the Ministry of Commerce said on Monday.
Pimchanok Vonkorpon, the director-general of the ministry’s Trade Policy and Strategy Office, said export value reached US$18.82 billion in July in comparison to $16.44 billion in June.
Import value also contracted by 26.38 per cent in July, shrinking down to $15.48 billion, which contributed to a trade surplus of $3.34 billion in the same month.
Pimchanok said the month-on-month recovery in exports is reflecting the sector’s gradual recovery due to trade with major trading partners returning as these countries relax their lockdown measures and begin stimulating the economy.
She said exports to the United States expanded by 17.8 per cent in July for the second month in a row.
Exports to China also contracted at a slower rate; however, it is still being affected by a resurgence of coronavirus infections on the mainland and flooding in its major manufacturing hub in Wuhan, she added.
For the first seven months of 2020, Thailand’s export value contracted by 7.72 per cent year-on-year, down to $133.16 billion. Import value also contracted by 14.69 per cent year-on-year, down to $119.12 billion, contributing to a trade surplus of $14.04 billion in the same period of time.
Export products that were in demand in July include foods (cassava related, palm oil, canned tuna, frozen meats, livestock feed) and products that related to the work-from-home trend (household appliances and furniture, cooling units, and solar cell).
Other products include sanitizing products to reduce the spread of the virus such as rubber gloves, and products that are used to lower financial risks during an economic downturn such as gold.
For the next five months, Pimchanok said that export recovery has gradually continued, especially for agricultural goods, food and products related to the new normal.
She said the global economic slowdown, the pandemic’s disruptions and effects on the future of global supply chain, the potential appreciation of the baht, and the current low-level oil prices will continue to put pressure on exports over the next period.
To cope with that, Pimchanok said the ministry is looking to increase Thailand’s e-commerce activity with China, South Korea, India, Cambodia and the US to expand online demand for Thai products.
However, the ministry still expects the country’s export value to contract by 8-9 per cent year-on-year, shrinking to $220 billion by the end of 2020. This is based on the assumption that export value would continue to reach at least $18 billion per month for the remainder of 2020.
