The Rise In Exports May Reduce The Contraction In Thailand's Economy

Daily Forex Fundamentals | Written by ecPulse.com | Oct 21 09 09:16 GMT |

Thailand witnessed today an improvement in exports as a result to the rise in global demand since many governments adopted stimulus plans that reduced the negative impact of the global crisis. This contributed to the gradual improvement in most Asian economies which are dependent on exports. Thailand released today the annual index of exports for the month of September, which showed the least drop in exports in 11 months to -8.5% from the previous reading of -18.4%, while it was expected to fall to -15.9%. With this exports reached to 14.9 billion dollars. As for the imports, they fell by 17.9% in September yet less than the previous fall of -32.8%, while it was expected to fall to -27.9%. Thereby the trade balance showed a surplus of 1980 million dollars compared to the previous surplus of 2080 million dollars, while it was expected to record a surplus of 2290 million dollars. Thai exports are expected to continue to rise during this month, which will help reduce the contraction seen by the economy to -10% from the previous expectations of -13%. The government also expects exports to decline this year by 19% before rising again by 10% during next year. The improvement in Thailand's exports came in almost all areas, and this is what determined the government to expect it to continue to rise, especially since the main markets for the Thai products the United States, Europe and Japan started stabilizing. This contributed to the improvement in the consumer confidence which rose to its highest in 11 months in September, where expectations started indicating that the challenges faced by the economy are far less than before. The GDP in Thailand shrank by 4.9% during the second quarter after shrinking by 7.1% during the first quarter. The Thai government, like other governments around the world adopted a stimulus package to counter the recession that hit the country, and added 230 billion baht to its is funding program which will last for three years and which reached a total of 1.3 trillion baht. This package was directed to the consumers, which were able to compensate for the fall in exports, so exports are expected to remained weak but with gradual improvement according to the outlook of the global economy that might support demand worldwide Ecpulse disclaimer: The content of ecPulse.com and any page in the website contain information for investors/traders and is not a recommendation to buy or sell currencies, stocks, gold, silver & energies, nor an offer to buy or sell currencies, stocks, gold, silver & energies. The information provided reflects the writers' opinions that deemed reliable but is not guaranteed as to accuracy or completeness. ecPulse is not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trades currencies, stocks, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, stocks gold, silver &energies presented should be considered speculative with a high degree of volatility and risk