As a result, the year-end trade deficit may not exceed $1 billion, said the ministry.

The Kingdom booked a trade deficit of $363.2 million in the first nine months of the year, down from a $6.9-billion deficit during the same period last year.

Exports increased by 16.42 per cent to $95.61 billion year on year in the first nine months, while imports rose by 7.74 per cent to $95.98 billion.

The significant export expansion last month prompted Commerce Ministry permanent secretary Karun Kittisataporn to predict that the trade deficit should not exceed $1 billion this year.

"I am confident in a lower trade deficit this year. The country may record a trade surplus if export growth for the remaining months rises significantly," said Karun.

Previously, the ministry had forecast the Kingdom would face a trade deficit of between $4 billion and $6 billion. The country recorded a trade deficit of $7.23 billion last year.

Karun said exports for the remaining months should exceed $12 billion, and that the year's target of $130 billion should be achievable - representing growth of 17.5 per cent over last year.

Exports increased by 15.3 per cent year on year to $12.04 billion in September. Imports rose by 9 per cent to $10.54 billion.

Kunyaphan Raengkhum, deputy director-general of the Export Promotion Department, said the large increase in exports last month was due to an increase in all major export goods.

Export of farm products - particularly rubber, tapioca and food crops - rose sharply. Year-on-year rubber exports rose by 53 per cent in the first nine months, tapioca by 26.7 per cent, and food crops by 23 per cent.

However, furniture exports dropped by 1.4 per cent and leather goods by 1.1 per cent in the period. Kunyaphan said this was due to labour and raw-material shortages and high competition from China and Vietnam.

Exports to new markets also increased last month.

Sales to Eastern Europe grew 39 per cent year on year, to Australia by 39.8 per cent, to India by 26.6 per cent, and to China by 26 per cent.

Rachane Potjanasuntorn, director-general of the Foreign Trade Department, said imports had been high in the first nine months due to an increase in fuel, capital goods and raw-material imports.

Fuel imports rose 15.4 per cent year on year last month to $2.16 billion. Of this amount, imports of crude oil were valued at $1.68 billion.

However, Rachane said oil imports this year were lower than last year. In the first nine months, average oil imports were 839,118 barrels a day, while Thailand imported 932,109 barrels daily in the same period last year.

The decrease in oil imports reflects the effectiveness of a campaign to reduce energy use, he added.

Petchanet Pratruangkrai

The Nation