Thailand’s exports for the first seven months of this year dropped by 5.5% year-on-year to US$163.3 billion. Imports fell by 4.7 % year-on-year to US$171.5 billion. This has resulted in a trade deficit of US$8.2 billion, according to the Ministry of Commerce.

In July alone, exports dropped by 6.2% year-on-year to US$22.1 billion, while imports also dropped by 11.1% year-on-year to US$24.1 billion, resulting in a trade deficit of about US$1.97 billion.

Export contraction in July was attributed policy interest rate hikes in several regions and the tightening of credit extensions by financial institutions. Moreover, slow economic recovery in China is affecting the purchasing power of Chinese people, according to the Commerce Ministry.

Concern over the global food situation is, however, driving up exports of rice, frozen, dried and fresh fruit, as well as fresh and frozen pork, said the ministry, adding that there are positive signs for Thai industrial products, with increased orders for locally-assembled cars, automotive accessories, spare parts, motorcycles and parts, electrical circuits, solar cells, steel and steel products, car tyres and machinery.

Exports of farm and agro-industrial products, however, have fallen for three consecutive months, by a total of 9.6%, with agricultural products and agro-industrial products falling by 7.7% and 11.8% respectively, due to pressure from economic slowdowns in Thailand’s main trading partners, such as China, Japan, ASEAN and Europe, although exports to secondary markets have picked up.