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Published on February 23, 2008

Despite the trade balance dipping into red ink for the first time in 17 months, Commerce Minister Mingkwan Sangsuwan yesterday was still optimistic that the whole year's result would not be negative.

However, he could not predict the trade surplus for the year, saying the government will closely monitor the figures for the following months.

Mingkwan also reaffirmed the ministry's export growth target of 10-12.5 per cent to $170 billion this year.

Last month, exports reached $13.96 billion but imports surged to $14.6 billion, leaving a $653-million deficit.

Mingkwan attributed the high import value to skyrocketing imports of crude oil and capital goods. Oil imports by value almost doubled to $2.38 billion, while volume increased only 3.3 per cent.

Imports of capital goods jumped 65.5 per cent. Machinery was up by 34.2 per cent, electronic appliances by 29.3 per cent and computers and parts by 22.3 per cent.

A crude-oil rig at $532 million and an aircraft at $239 million also pushed imports up last month, he said.

Exports are still doing well, despite the stronger baht. This can imply that exporters can adapt in the face of negative factors, he added.

Exports should also keep picking up in the following months, ensuring that the export target is achieved this year, Mingkwan said.

All export sectors experienced expansion, with agro-industries, industries and others growing 41.6 per cent, 30.2 per cent and 36.3 per cent, respectively.

Exports to all markets also improved, but particularly to traditional markets. Exports by value to the US were up 16 per cent year on year, to Japan up 11.4 per cent and to Europe up 21.5 per cent. Exports to Asean also climbed up 32.9 per cent, while those to China increased 45.5 per cent.

Petchanet Pratruangkrai

The Nation