Thailand registered a four-year record low in export performance in January this year, shipments having been affected by the weak global economy and decreasing oil prices, according to the Ministry of Commerce.
The agency put the value of Thai exports in January at US$15.71 billion, a decline of 8.91% compared to the same period last year, the lowest value since November 2011, said a news report by the National News Bureau of Thailand (NNT).
The data also represent the 13th straight month of decline for the nation’s exports.
The fall was greater than expected by economists, as it exceeded their 6.6% projections. The decrease in shipments followed the 8.12% export slide logged in December 2015.
In January, Thailand posted shipment contractions to major markets like the U.S., the EU, Japan, and the Association of Southeast Asian Nations (ASEAN). The record low in global oil price in 11 years and shrinking agricultural exports also affected exports, said the ministry.
Minister of Commerce Suwit Maesincee said Thailand still remained the fourth largest exporter in the world despite the decrease, indicating it remained competitive and maintained its market shares with important trade partners.
In his outlook, the minister said global trade will likely rely less on goods exports and more on services exports. He suggested that Thailand strive to keep its old markets while searching for new ones, raise marketing for the services sector, actively invest in foreign countries, and hike participation in economic cooperative ventures.
Global CEOs still attracted to Thailand
In a separate news report, NNT said Thailand has been ranked among the top five destinations for investment by business executives in ASEAN despite their lower confidence in the global economy.
Sira Intarakumthornchai, CEO of Pricewaterhouse Coopers, disclosed results of the 19th Global CEO Survey which indicated a decrease in confidence among CEOs around the world. The index of confidence in the global economic growth dropped from 37% last year to 27%, while the confidence in their company’s profit also edged down from 39% to 35%.
Similar results were obtained from another survey conducted specifically on CEOs within the ASEAN region. The sentiment index on economic growth went down from 49% to 39%, while that on corporate earnings declined from 47% to 38%.
Despite the negative sentiment, the survey pointed out that investment has not been affected. Thailand has been ranked one of the five most attractive places for investment in the eyes of ASEAN CEOs, with the country’s strengths being the abundance of skilled labor, acceleration of public and private investment spending, and its location in the heart of the ASEAN region.
Photo: Peter van der Sluijs
