Thailand’s October exports up on the back of stronger shipments

And a recovering agriculture sector.

Exports to ASEAN showed an improvement but exports to China remained weak. However, imports surprised on the downside, partly due to lower oil prices and a base-effect stemming from high gold imports last year, according to a report by DBS.

Thailand’s exports were stronger than expected in October, supported by stronger shipments from the manufacturing sector and the continued recovery in the agriculture sector.

DBS adds that the trade balance improved in October but negative risks are expected as the global economic environment could pose challenges for the export recovery, whereas imports could accelerate in line with more public investment.

The improvement in exports is positive news but there are still risks concerning global economic growth and weak agriculture prices. On balance, the trade balance could start to decline with the pick-up in imports, but this will be partly offset by the decline in oil prices.

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