The Kingdom had a trade deficit of $1.87 billion in the first eight months of the year, much lower than the $7.73 billion deficit in the same period last year.

 Exports increased 16.6 per cent to $83.56 billion in the first eight months, while imports grew 7.6 per cent to $85.43 billion.

 Commerce Ministry permanent secretary Karun Kittisataporn said yesterday that a strong increase in exports and a slight decrease in fuel imports would curb the country's trade deficit this year to not more than $5 billion.

 Thailand's trade deficit last year was $7.2 billion.

 "Thailand's current account will be in a surplus with a decrease in the trade deficit and an increase in tourism income," Karun said.

 Year-on-year exports grew 16.4 per cent to $11.85 billion in August, a record high for the country.

 Karun predicted that exports would exceed $11 billion per month for the rest of the year and that they would nearly reach the target growth of 17.5 per cent to $130.37 billion. August was the fifth month this year when exports exceeded $10 billion.

 The recent coup will not affect exports in the near future, said Karun. That's because the coup was peaceful while most exporters have already received future purchase orders.

 The ministry will meet with the private sector in November to set a target for next year's exports.

 Kunyaphan Raengkhum, deputy director-general of the Export Promotion Department, said there were positive signs that exports would grow gradually during the rest of the year thanks to the upcoming holiday season.

 Most manufacturers are confident that export growth will be close to the target of 17.5 per cent.

 Year-on-year exports of agricultural goods increased 16.6 per cent in August. Rubber, tapioca, frozen shrimp, and processed fruits logged strong showings. Industrial exports rose 17.5 per cent, with electrical goods, processed food, jewellery, and automobile parts performing particularly well.

 However, furniture exports slipped 1.4 per cent in August from a lack of raw materials and labour and strong competition from China and Vietnam.

 In the first eight months, exports to all markets increased gradually, except to Indonesia where exports slid 27.7 per cent due to its internal political problems, he said.

 Exports to the US jumped 16.6 per cent, to the EU 23.8 per cent, to China 24.8 per cent, to India 53.9 per cent and to Japan 6 per cent.

 Imports increased 13.4 per cent to $11.5 billion last month, largely from fuel and raw material imports, said Rachane Potjanasuntorn, director-general of the Foreign Trade Department.

 Fuel imports climbed 47.3 per cent to $2.46 billion, while raw material imports rose 11.2 per cent to $4.78 billion.

 Rachane said import figures should decrease during the rest of the year because of a slight fall in world oil prices and the government's policy of controlling and closely monitoring imports, particularly of crude oil and gold.

Petchanet Pratruangkrai

The Nation