BANGKOK: Exports from Thailand posted an unexpected rise last month, growing by the most in over three years. Exports rose 10.27 per cent year-on-year in February, compared to a fall of 8.91 per cent in January. Economists were expecting a drop of 8.7 per cent. It was the first rise since December 2014 and the biggest since January 2013.
Imports, however, dropped more than expected – falling 16.82 per cent, compared to a fall of 12.37 per cent in January. Economists were expecting a drop of 9.9 per cent.
Exports from Thailand have been slowing over the past two years amid political instability and against the backdrop of a slowing China. The baht has also depreciated by 10 per cent versus the dollar in the 12 months to the end of February.
Ordinary Thais are also burdened with high levels of household debt – a legacy of a period of generous subsidies, loans and tax breaks over the past 15 years. But the economy also benefited from low interest rates in 2015, with two back-to-back rate cuts in March and April, and the domestic political scene has calmed somewhat since a military coup in 2014.