According to the MoC, May exports expanded 7.7% to US$20.9 bn, increasing from the -3.7% YoY in April and on a MoM basis +23.7% as most industries have resumed normal operations.

Just briefly:

• Industrial product exports (reps 73.2% of exports) was +9.5% YoY w/ autos +83.5%, electric appliances +11.8% and electronics parts +10.9%
• Agri products (10.8% of exports) was -5% YoY mainly due to a drop in rice (-29%) and rubber (-27.5%) b/c of the government’s price guarantee program that has really hurt Thailand’s competitiveness.

The major export markets  for Thailand are:

• Asia (66%) increasing +5.5%
• Europe (9%) contracted for the 4th consecutive month but at a slower pace of -4.4% vs -25.7% in April, why? AUSTERITYYYYYY!
• US Exports (10%) increased +10.9%YoY

 What to expect going forward?

• There will be a trade-off between a lot of industries coming back on track since the floods last year, especially as seen with automotives, but with the EU being a major trading partner for most of Asia there may be some weakness as well, in the end we don’t expect any major strong growth trends, just a muddling through.