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Published on July 25, 2007

The Commerce Ministry announced yesterday that imports totalled $66 billion, a 5.6-per-cent increase over the same period last year. The half-year trade surplus was $5.59 billion.

However, the ministry expressed concern over the impact of the strong baht earlier this month, saying it would affect export growth in the next three months.

"The government will closely monitor export figures in the second half to see if they are affected by the stronger baht. However, the ministry is confident of achieving its export growth target of 12.5 per cent, to $145 billion, this year following robust exports in the first half," Commerce Minister Krirk-krai Jirapaet said.

He said he was hopeful that the recent measures by the government and the Bank of Thailand to stabilise the baht will ensure exports continue to expand during the rest of the year.

Exports in the first half accounted for 49 per cent of the export target for the year. In June alone, they totalled $12.85 billion, a 17.7-per-cent increase compared with the same period last year.

Exports in all sectors saw significant growth last month - 18.4 per cent in the agricultural and agro-industrial sectors, 18.9 per cent in the industrial sector, and 13.2 per cent in others.

Rice exports jumped 49.3 per cent in volume and 56.5 per cent in value. Most industrial exports increased more than 15 per cent last month, including automobiles, construction materials, plastics, jewellery, cosmetics, medical products and printed goods.

Exports did well in most markets, although sales to the US fell 5.8 per cent last month due to the slow-down there, the impact of the baht's appreciation and the loss of Generalised System of Preferences privileges for some products.

Last month, imports grew 5.2 per cent year on year to $11.96 billion. The trade surplus for June was $882 million.

Imports rose in all sectors except fuel, which fell by 1.4 per cent thanks to the stronger baht.

Imports of capital goods grew 4.5 per cent, raw material and semi-manufactured goods by 6.7 per cent, consumer products by 16.7 per cent, and autos and auto parts by 5.3 per cent. Imports for the remaining months of the year are expected to average about $12 billion per month because of demand for capital goods and raw-materials and the business expansion plans of 14 state-owned enterprises, which involve imports worth some $1.2 billion.

 For instance, Thai Airways will import three new aircraft for $440 million, and PTT will import a gas pipeline valued at $413 million.

Petchanet Pratruangkrai

The Nation