Thai trade deficit swings to $1.2bn

BANGKOK: Thailand recorded $1.2 billion trade deficit in August, swinging into a red after a surplus the previous month, as export growth slowed, government data showed on Thursday.

Thai shipments rose 31.1 percent in August from a year earlier to $21.56 billion, after a 38.3 percent increase in July, when the country had posted a $2.8 billion trade surplus, according to the Ministry of Commerce.

Exports are a key component of Thailand's economy and government data last month showed gross domestic product contracted 0.2 percent in the April-June quarter because of the slowdown in foreign trade.

Imports surged 44 percent to $22.77 billion in August because of strong demand for commodities, the government said.

"Thailand imported more capital goods and resources such as crude oil and gold," said Yanyong Phuangrach, permanent secretary at the Ministry of Commerce.

Copyright AFP (Agence France-Presse), 2011