Bangkok, Krung Thai Bank reveals September exports grew 2.1 percent, keeping an eye on main markets. Weak pressure on exports at the end of the year It is expected that exports for the whole year will shrink by -1.6%.
Mr. Channith Chaisingthong, Krungthai COMPASS, said that export value in September 2023 grew by 2.1 percent, valued at 25,476.3 million US dollars, expanded by 2.1 percent, higher than the market expected -1.75 percent, but still expanding at a slower pace. From the previous month, 2.6 percent from exports of industrial products returned to contraction, while exports of agricultural and agro-industrial products returned to expand. As for gold exports this month, they expanded 64.8 percent. Excluding gold, the export value this month grew 0.7 percent. Total exports in the first 9 months shrank -3.8 percent.
In terms of exports, most important markets contracted. For example, the United States returned to contraction in 3 months at -10.0 percent. Important products that contracted included computers, equipment, and components. Gems and jewelry and clothing, etc. Important products that expanded include semiconductors, transistors and diodes, electrical transformers and components. and rubber products, etc. (Exports in the first 9 months shrank -1.2 percent)
The Chinese market continued to expand for the second month by 14.4 percent. Important products that expanded included fresh, chilled, frozen, and dried fruits and computers. Equipment and components and gems and jewelry, etc., while important products shrank. Including rubber products and chemicals, etc. (Exports in the first 9 months shrank by -1.3 percent)
The Japanese market returned to contract by -5.0 percent. Important products that contracted included computers, equipment and components. chemicals and plastic products, etc., while important products that expanded include fax machines, telephones and components, and automobiles, etc. (exports in the first 9 months expanded by 0.1 percent)
The EU27 market shrank for the 4th consecutive month by -9.3 percent. Important products that contracted include computers, air conditioners, and rubber, etc. Important products that expanded include electrical transformers and components. and telephone fax machines and components, etc. (exports in the first 9 months shrank -4.7%)
ASEAN5 Market: Returned to expand in the past 4 months at 4.1%YoY. Important products that contracted include automobiles, equipment and components, aircraft, spacecraft and components, and rubber, etc. Products that contracted include gems and jewelry. and electrical circuit boards, etc. (Exports in the first 9 months shrank by -6.9 percent)
Keep an eye on weak demand from major market countries that continues to put pressure on merchandise exports at the end of the year. The manufacturing sector of major economies is likely to continue shrinking. This is reflected in the October Manufacturing Purchasing Managers' Index (Flash Manufacturing PMI) of Japan and Europe, which were at contraction levels due to the continued decline in new orders for the United States. Even though the index is at 50, it reflects that the production sector is likely to be stable from the previous month. But manufacturers are maintaining low inventory levels following weak demand. In the midst of global product demand, there are still no signs of recovery, which is a factor that puts pressure on Thailand's merchandise exports to recover at the end of the year to a limited extent. (Although the growth rate in the 4th quarter will return to positive partly from last year's low base effect), causing Krungthai COMPASS to maintain its forecast that the value of this year's exports is likely to contract at -1.6 percent and in line with The direction of exports of countries in most regions which continues to shrink.
Source: Thai News Agency