Thai exports rose 5.9 percent year-on-year in July, a sharp drop from 18.6 percent in the first half, due to the strong Thai baht and a slowing US economy, the commerce ministry said Tuesday.
Exports totalled 11.81 billion dollars last month, as shipments to the United States - Thailand's largest trading partner - dropped by 13.6 percent from the same period of 2006.
Commerce Minister Krirk-Krai Jirapaet said. Imports, meanwhile, rose by about 2.4 percent year-on-year to 11.59 billion dollars, putting the July trade surplus at 211 million dollars. "Exports started to decline because the baht continued its rise, meaning Thai exporters earn less when they convert their foreign-currency income into baht," Krirk-Krai told reporters.
"Also, the economic slowdown in the US has resulted in decreased shipments to the States," he added. He said Thailand's total exports in the first seven months of 2007 added up to 83.4 billion dollars, up 16.6 percent on the same period last year, while imports were up 5.1 percent to almost 77.7 billion dollars.
Despite the slowed export growth, Krirk-krai said the ministry has maintained its whole-year export target of 130 billion dollars, an increase of 12.5 percent from 2006. "The baht has become more stable and weakened, while Thailand has done well in penetrating new export markets," he said.
"Consequently, I am confident that exports could reach the target this year," he added. The Thai currency soared almost 12 percent against the dollar last year and has continued to rise in 2007, prompting the military-backed government to introduced a package of measures to curb the baht's rise.
A stronger baht makes Thai products more expensive overseas, hurting the kingdom's competitiveness against regional rivals. The Thai currency is trading at about 34.50 to the dollar, compared to last year's average of 40 baht to the greenback.
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