Net Exports of Goods and Services

Highlights

• Net exports of goods and services refer to the net income generated by the trade of goods and services between nations, that is, revenues generated by selling goods and services abroad less expenditures on imports of goods and services from abroad. When a country experiences more revenue from exports than expenditures for imports, that indicates an accounts surplus; if revenue is less than expenditures, that indicates an accounts deficit.

• In the last quarter of 2008, Thailand's net exports of goods and services showed a deficit of 4.442 billion THB (127 million USD), concomitant with a plunge in exports as a result of the global economic crisis. That crisis resulted in a fall in 2008 net export surplus to 251 million THB (7.17 million USD) from 674 million THB (19.3 million USD) in 2007.

• Although exports are expected to continue to plunge in 2009 due to the global recession, net exports of goods and services are expected to achieve a higher surplus than in the previous year. This is because imports are likely to fall at a more precipitous rate than exports, a result of this year's plunge in the price of oil along with a falling demand for imports consistent with reductions in domestic consumption and investment.