BANGKOK- Thai exports unexpectedly rose for the first time in 11 months in August amid weak global demand, and the ministry said on Tuesday that shipments should be “good” in the final quarter of the year because of year-end orders.
Customs-based exports a key driver of Thailand’s economy, rose 2.6 percent in August from a year earlier, compared with analysts’ median forecast for a 4 percent decline in a Reuters poll. Exports climbed 9.7 percent from July.
“The growth was supported by improved signals from the global manufacturing sector compared to the previous month, although they remained below normal levels,” the ministry said in a statement, adding a weak baht also helped.
The Thai currency should continue to support exports, which are expected to increase in the final quarter of 2023, Keerati Rushchano, the ministry’s permanent secretary, told a briefing.
“In October to December, we should see good things coming in. It’s a cycle where there will be a lot of orders,” he said.
“The baht should also be helping,” he said. The baht has weakened by 4.7 percent against the dollar so far this year.
The ministry predicts exports will be flat or down by 1 percent this year, Keerati said. In January-August, exports declined 4.5 percent year-on-year.
Chaichan Chareonsuk, chairman of the Thai National Shippers’ Council, said the August exports were a “surprise” but shipments in September might fall because of last year’s high comparative base of nearly $25 billion.
The group expects annual exports in September this year to be “at least flat or lower slightly,” he said.
In August, exports of integrated circuits jumped 40 percent year-on-year while exports of cars and parts rose 24 percent . Rice export volumes dropped 8.3 percent on-year to 630,567 metric tones but export value rose 10.8 percent year-on-year.
