Thailand’s merchandise exports contracted in December and in the fourth quarter of 2015, pulled down by the slowdown in Asia’s emerging economies and a decline in commodity prices, according to the Bank of Thailand (BOT).
The value of merchandise exports declined by 9.1% in December 2015 compared to the same period in 2014 due to the weakening economies of China and countries in the Association of Southeast Asian Nations (ASEAN), the central bank added.
The BOT noted that earlier export boosters have dissipated, contributing to the contraction. These included the gradual waning off of the earlier acceleration in exports of new models of commercial cars. Another negative development was the slight decline in shipments of optical appliances and instruments “in line with sluggish global demand for smart phones.”
In addition, export prices of petroleum-related products continued to fall.
However, BOT said the Thai economy continued to recover in December, supported mainly by domestic spending, both public and private. The improvement in private consumption was spurred partly by increased car purchases before the impending rise in vehicle excise tax that would come into effect at the start of 2016, as well as by the government’s tax deduction measures at the end of 2015. As a result, manufacturing production slightly improved. In addition, the tourism sector continued to recover.
In the fourth quarter of 2015, the value of merchandise exports dropped significantly owing to a decrease in the export prices of several products in the wake of sliding global oil prices, as well as to a decline in quantity due to the economic slowdown in China and ASEAN countries.
Still, added the central bank, the Thai economy continued to recover at a gradual pace in the quarter, propped up by heavier public spending, the enhanced performance of the services sector, and a gradual uptick in private consumption. The tourism sector improved after the bombing incident in Bangkok. Manufacturing production and private investment rose slightly, and investments in certain sectors expanded, especially in telecommunication and alternative energy. However, farm income remained low.
Photo: Skyline along Sukhumvit road
