Upto 3.7% Fallen of Thailand Exports
Economists had predicted a 3 percent increase in exports, not a drop. Still, the drop for April was better than the 6.5 percent drop in March.
Although some of the problem is a cyclical weak demand for exports of electronics at this time of year, the global economic crisis contributed too. Moreover, it will likely curb demand for Thailand’s exports for the near future.
The decline is a severe blow for the economy of Thailand that is heavily dependent on exports, which account for more than two thirds of gross domestic product.
Thailand traditionally exported large amounts of cassava, gypsum, rice and shrimp. However, in recent years, high-technology products such as integrated circuits and parts, electrical appliances and vehicles led strong growth in Thailand’s exports.
The nation’s main export partners are the European Union, United States, Japan and China and sagging demand in its key markets of the EU and U.S. are affecting Thailand’s exports.
News of the plunge in Thailand’s exports data came just a few days after the World Bank issued a warning to export-dependent countries in Asia that the eurozone debt crisis was a threat to their economies.