2010.09.2006:27:00UTC+00Thai Exports Rise For Tenth Month Despite Strong Baht

Thai exports climbed for the tenth successive month in August, despite the baht's appreciation to a 13-year high against dollar, figures from the Commerce Ministry indicated Monday.

Exports increased 23.9% year-on-year in August to US$16.45 billion with demand for automotive components recording a strong growth. Economists were looking for a 23.5% growth in shipments. In July, exports rose 20.6%.

At the same time, imports grew 41.1% during the month, much faster than the 36.1% growth in the previous month. The growth was also stronger than the 38.8% expected. Total imports during August amounted to US$15.8 billion.

The trade balance showed a surplus of US$643 million compared to a deficit of US$940 million in the previous month. Economists had forecast a bigger US$705 million surplus.

Exports of electronic appliances grew 41.8% annually and that of motor vehicles grew 68.3%. Shipments to Thailand's all key markets, including the U.S, Japan, India, ASEAN nations and Latin America continued to grow strongly in August, the ministry said. However, there was considerable decline in the exports to middle-East and Australia.

During the first eight months of the year, exports value increased 32.6% compared to same period last year and imports rose 47.9%. The trade surplus was US$6.08 billion during the period.

Last month, Prime Minister Abhisit Vejjajiva had reportedly said that the Thai government will prevent excessive fluctuation in the currency. He also assured that such measures will not go against the mechanism of the market. The Thai baht had strengthened to a 13-year high gaining around 8.5% this year, raising exporters' concerns.

Last week, Finance Minister Korn Chatikavanij said that the Bank of Thailand has been taking measures to control currency appreciation. He said fluctuations in exchange rates is currently a major concern throughout the world.

Thailand's strong growth, so far, has been fueled largely by exports even as domestic political unrest threatened to destabilize the economy. In the second quarter, the economy grew 9.1%. Growth was also driven by strong rises in investment, production and consumption. However, the expansion slowed from 12% growth in the first quarter.

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