Thailand’s exports contracted for the fifth consecutive month in February, falling 4.7% year on year to US$22,376.20 million due to a slowing global economy, according to the Commerce Ministry on Thursday.
That was lower than the 6.9% drop predicted by Reuters poll for February and followed January’s 4.5% decline.
The ministry noted in a statement that a high base from the previous year also contributed to the decline.
Phusit Ratanakul Sereroengrit, chief of the ministry’s department of international trade development, told a news conference that shipments, a key engine of the Thai economy, were likely to fall in the first and second quarters before rising in the second half of the year.
The Thai government is keeping to its 1% – 2% export growth target for this year, following a 5.5% increase in 2022.
Imports increased by 1.1% year-over-year in February, leading to a trade deficit of $1.11 billion.
On Wednesday, the Monetary Policy Committee (MPC) voted unanimously to raise the policy rate by 0.25 percentage point from 1.50% to 1.75%, effective immediately.
The Bank of Thailand said that the country’s economy should continue to expand, driven mainly by tourism and private consumption. Exports of goods are recovering and expected to gain strength in the second half of this year.
However, the global economic uncertainty has increased, in part from persistent inflationary pressures and episodes of banking stresses in advanced economies. Headline inflation would likely return to the target range in the middle of the year, but core inflation remains elevated with upside risks from higher cost pass-through and demand pressures.
