Global Recovery and Electronics Up-cycle Buoy Thai Exports Full-year Growth Expected at close to 7% (Business Brief No.3702 Full Ed.)

► - Thai exports were valued at USD21.224 billion for August, growing 13.2 percent YoY versus a market expectation of 4.9 percent growth, thus being the third time during 8M17 that the total value has exceeded the USD20 billion level. This satisfactory performance was attributable to high growth in the categories of electronics, agriculture and agro-processing, plus oil-related products and gold.

► - Supported by an average export growth of 8.9 percent, it is likely that our 2017 full-year growth will reach around 7.0 percent YoY. However, growth over the remaining four months may be lower than the 8M17 performance, due to a high 2016 base. In addition, commodity prices could remain close to present levels, since they are already higher than 2016 data. Supporting factors toward higher yearend exports include a global economic recovery and an up-cycle in electronics sales, which would potentially benefit our shipments, e.g., electrical/electronic appliances, seafood and processed chicken that are expected to maintain their growth momentum throughout the year. Nevertheless, THB appreciation during July – when purchase orders were placed for the yearend – could affect the profit margins of exporters over the rest of the year.