Thai exports rise amid global recovery

Thailand’s exports rose for the fourth consecutive month in February as orders for rice, electronics and automobiles climbed, supporting the nation’s economic recovery.

Shipments climbed 23.2 per cent from a year earlier to $14.4bn last month, Commerce Minister Porntiva Nakasai said in Nonthaburi province on the outskirts of Bangkok today. The median estimate of six economists in a Bloomberg survey was for an 18.8 per cent gain. Exports jumped 30.8 per cent in January.

Thailand’s economy exited a yearlong recession last quarter, supported by a revival in exports and tourism. Companies including KCE Electronics Pcl have forecast higher sales and Electrolux AB said February 24 it is increasing capacity at a Thai factory.

“Shipments continue on the recovery trend from the weakness a year earlier,” David Cohen, a Singapore-based economist at Action Economics, said before the report. “This would parallel the ongoing rebound in exports across the region as recovery in global demand continues into 2010. Along with the rebound in tourist arrivals, it is supporting continued growth in the Thai economy.”

Thailand joins other countries in Asia in reporting a rebound in exports as the region leads the world from its worst recession since World War II. Malaysia’s overseas sales surged the most in more than 11 years in January, and Singapore’s export growth accelerated to 23.4 per cent in February as electronics and pharmaceutical shipments gained.

Thailand’s February shipments grew at a slower pace than the previous month, when the data was boosted by a low base in 2009. Thai exports plunged 26.5 per cent in January last year.

“Exports continue to maintain their upward momentum,” Porntiva said. “We expect that the export value will be about $14bn to $15bn this month and we will hit our 14 per cent growth target.”

Imports climbed 71.2 per cent in February, the third consecutive month of gains after a year of contraction. The trade surplus narrowed to $440m from $516m in January.

The Bank of Thailand on March 10 kept its benchmark interest rate unchanged at a five-year low of 1.25 per cent, saying policy makers needed time to assess the impact of the country’s political protests. Still, the central bank signaled that it may raise borrowing costs in the coming months as the economy recovers.