Thailand's export growth slowed in July, mainly attributed to a decrease in fruit shipments, a semiconductor shortage that affected production in related sectors, and lockdown measures in some major Chinese cities that interrupted production and lengthened delivery times.
The Commerce Ministry reported on Friday the customs-cleared value of the country's exports continued to expand -- for the 17th consecutive month -- but at a slower growth rate of 4.3% to US$23.6 billion (829 billion baht) after robust growth of 11.9% in June, a 10.5% uptick in May, a 9.9% increase in April, and a jump of 19.5% in March, which was the highest level since records began in 1991.
Thai exports from the real sector (excluding gold, oil-related products and weaponry) rose by 4.1% after healthy increases of 10.4% in June, 11.1% in May, 6.9% in April and 8.9% in March.
Supporting factors include higher prices of agricultural and food products as world output has been disrupted by many factors, such as Ukraine's limited grain exports in the previous period and import restrictions in some countries.
Imports increased by 23.9% in July to $27.2 billion, resulting in a trade deficit of $3.66 billion.
For the first seven months of 2022, exports expanded by 11.5% to $173 billion, while imports rose by 21.4% to $183 billion, resulting in a trade deficit of $9.91 billion.
Exports of agricultural and agro-industrial products rose for the 20th consecutive month in July, growing 14.6% from the same month of last year to $4.4 billion, led by rubber (+12%); sugar (+259%); fresh, chilled, frozen and processed chicken (+35.5%); canned and processed seafood (+16.4%); rice (+21.5%); pet food (+25.4%); canned and processed fruits (+17.3%); and ice cream (+34.2%).
Industrial product exports increased for the 17th consecutive month with a growth rate of 0.1% to $14.9 billion. Products that recorded healthy growth included gems and jewellery (excluding gold) (+19.1%); air conditioners and components (+25.5%); fax machines, telephones, equipment and parts (+34.6%); cosmetics, soaps and skin care products (+13.6%); aluminium products (+21.4%); and apparel (+10.7%).
For the first seven months of 2022, exports in the real sector (excluding gold, oil-related products and weaponry) increased by 8.3%.
"In the first seven months of 2022, exports already exceeded the ministry's full-year target of 4-5% growth," said Commerce Minister Jurin Laksanawisit.
"Exports should beat the target for the whole year, helped by higher global demand for food, relaxed pandemic curbs globally, lower freight rates and a weak baht."
However, he said Russia's invasion of Ukraine and a shortage of semiconductors are likely to continue to pressure shipments.
Chaichan Chareonsuk, chairman of the Thai National Shippers' Council, said chip scarcity dealt a heavy blow to the shipment of automobiles, which are one of Thailand's top five export products. This played a key role in Thailand recording slower export growth in July.
He said such problems are expected to persist until the fourth quarter of 2022.
However, Mr Chaichan said a healthy rate of shipments for several products is likely to help offset lower automobile exports and boost the country's export growth to 8% this year.
"Given the prolonged chip shortages, it will be quite tough for Thailand to achieve 10% growth as hoped," he said.
