Thai exports likely to grow by 6.9% in 2013

BANGKOK, April 2 (TNA) - The Thai National Shippers’ Council has predicted that Thailand's export value should grow only by 6.9 per cent on average this year, after the US dollar-denominated value of Thai exports in February 2013 dropped by 5.83 per cent to 17.93 billion US dollars and their baht-denominated value amounted to 529.53 billion baht. Paiboon Ponsuwanna, Chairman of the Thai National Shippers’ Council, made the projection on Monday, pointing out that the value of the Thai baht has appreciated by 4.51 per cent from last June, resulting in the fallen Thai exports. Paiboon acknowledged that the value of Thai exports rose by as much as 16.9 per cent in January this year, but it declined by 11.32 per cent in February, causing Thailand's export value in the first two months of this year to increase by only 4.09 per cent consequently, and that, when it was converted into the Thai currency, it declined by 0.13 per cent. Paiboon, thus, projected that the Thai export value should grow only by 6.9 per cent on average throughout this year, noting that Thailand's export growth rate at 9 per cent earlier targeted by the Thai Ministry of Commerce would be realized only on the condition that the value of Thai exports amounted to 20.5 billion US dollars monthly, but the ministry has announced Thailand’s export value actually stands at about 18 billion US dollars monthly. The council's chair also cautioned that Thailand's energy supply disruption due to Myanmar's suspended gas exports from April 5-14, 2013 may cause damage worth about 4.41 billion to Thai industries, with the heaviest damage, worth about 796.41 million US dollars, going to the electronic industry, followed by 566.03 million US dollars to the automotive industry, 402.04 million US dollars to the machinery industry and 300.06 million US dollars to the petroleum industry, urging the Thai government to work out solutions. Ratidanai Hoonsawat, an Economics lecturer at Bangkok-based Chulalongkorn University, said that the baht appreciation has reduced the real Thai export value by 1.03 per cent from last June and if the appreciation continued at its present pace, the baht value could become 27 baht a US dollar within one year and four months with more serious impacts on Thai exports. Meanwhile, Vatchari Vimooktayon, Permanent Secretary for Commerce, reported that Thailand's consumer price index (CPI) stood at 104.73 points in March 2013, reflecting the country's inflation rate of 2.69 per cent year year-on year, as the prices of food products and non-alcoholic beverages rose by 3.66 per cent, meat by 6.63 per cent and vegetables and fruits by 9 per cent. According to the senior official, Thailand's inflation in the first quarter of this year ran at 3.09 per cent year-on-year and her ministry expects the country's inflation rate at 2.8-3.4 per cent throughout this year on average, on conditions that the Dubai crude price stays at 100-120 US dollars per barrel, the baht value ranges from 28.5 to 32.5 baht against the greenback and the Thai government extends its subsidies for people's costs of living. (TNA)