Thai exports likely to grow by 2.5% in 2015

BANGKOK, January 6 (TNA) - The Thai National Shippers Council (TNSC) predicts that Thailand's export value should grow by 2.5 per cent in 2015, after a 0.2 per cent shrink last year. TNSC Chairman Nopporn Thepsithar told journalists on Tuesday that the prediction is based on the fact that trading partners' economies have been recovering, with the entire economy of the 10-member Association of Southeast Asian Nations (ASEAN) expected to expand by 5.4, the highest rate among Thailand’s trading partners, followed by the United States by 3.1 per cent and the European Union (EU) by 1.3 per cent. Nopporn conceded, however, that the EU's decision to exclude Thailand from its Generalized System of Preferences (GSP), effective from January 1, 2015, should affect Thai exports of farm products, processed farm products and industrial products, as 18 items of the Thai products had sought 87 per cent of the EU's GSP privileges, totally worth about 2.65 billion US dollars annually. The TNSC chair also warned of impacts of Russia's ruble depreciation, suggesting that, as the United States and the EU are imposing economic boycotts on Russia, Thai exporters seek to sell farm products and fresh food to the Russian market instead. According to the TNSC chair, the value of Thai exports dropped by 0.2 per cent on average in 2014, with last November's figure alone declining by 1 per cent to about 18.57 billion. During the first 11 months of last year, the TNSC chair stated, the value of Thai exports dropped by 0.42 per cent year-on-year to 209.19 billion US dollars. The TNSC chair pointed out that Thailand's export value of agricultural and agro-industrial products alone dropped by 2.8 per cent to 32.46 billion US dollars, including natural rubber and frozen seafood, while Thai exports of electronic and electrical products, automobiles, rice and tapioca remained growing. Meanwhile, Finance Minister Sommai Pasi recommended agencies concerned to find ways to boost Thai exporters’ competitiveness, affected by the EU's GSP cut. As the Thai government has contributed about 20 per cent of the country's gross domestic product (GDP) in driving the national economy, the finance minister opined if the state could contribute more, it could help boost Thai exports, while also reducing the Thai economy's dependency on exports to about 60 per cent, from 70 per cent currently. (TNA)