Thailand's exports up 7.2% in June

BANGKOK: Thailand's exports in June rose 7.2% from a year earlier, the Commerce Ministry said on Friday, a surprisingly high figure that it attributed to improved global demand and government measures to boost trade.

The ministry is due to release June trade data on Monday, but its permanent secretary, Chutima Boonyaprapatson, on Friday told reporters the June figure, which is the first on-year increase since February.

The June expansion pace is more than double the 3.1% gain seen in a Reuters poll.

In the first five months of 2014, exports were down 1.2% from a year earlier.

In June, the first full month under the military government, shipments were much higher "because of a recovery in key markets, especially the United States and Europe, plus the ministry's measures to boost trade," Chutima said.

"This is a good sign for Thai exports, which are moving in a better direction," she added.

The ministry is sticking to its export growth forecast of 3.5% for 2014, Chutima said. In 2013, exports fell 0.3%.

Thai exports have been weak this year, even though months of political unrest has not disrupted factories or ports, and the global economy has somewhat improved.

On May 22, the Thai army seized power in a bid to restore order and get on track a stumbling economy battered by tepid exports, weak domestic demand and reduced tourist arrivals.

In January-March, the economy shrank 2.1% on the quarter due to weak exports and domestic demand. But many economists expect growth in the second quarter, meaning the country will avoid a technical recession in April-June.

Thailand is a regional hub and export base for global automakers and a major producer of hard disk drives. Shipments are equivalent to more than two-third of the economy each year. – Reuters