Malee Choklumlerd, directorgeneral of the International Trade Promotion Department, said exporters – mainly from agricultural sector – believed exports would grow stronger in the second half the year on the back of more supply and high demand in many markets.

“The ministry will maintain our working target of a 5 per cent expansion. Many industries have foreseen better export growth, while some predict steady growth. Only a few industries expect lower export growth compared in the first half of this year,” she said.

After a meeting with enterprises from various agro-industries and other industries this month, the department found exports from the agricultural and food sector are projected to expand from a previous projection of 1.9 per cent to 3 per cent for the year and be valued at US$33.93 billion [Bt1.2 trillion].

But exports from heavy industry are expected to decrease from the previous projection of 4.9 per cent to 3.1 per cent for the year and be worth $123.9 billion.

Fashion product exports are predicted to grow 0.6 per cent from the previous projection of 4.8 per cent and be worth $13.85 billion, while exports of lifestyle products are forecast to expand from 3.5 per cent to 4.9 per cent ($2.91 billion).

In agricultural sector, rice shipments are also forecast to grow in the second half of this year, with it predicted they could reach 9.5 million tonnes or a rise of 9 per cent for the year.

Sugar exports are expected to rise from the previous projection of 4 per cent to 20 per cent due to higher demand in Cambodia, Laos, Myanmar and Vietnam. However, exports of rubber and tapioca are forecast to drop about 10 per cent based on lower China demand.

In the food sector, exports are tipped to expand from 2.7 per cent to 5.2 per cent for the year.

Malee said that exports of frozen, canned and processed food was expected to grow 3.1 per cent or more after the United States upgraded Thailand’s status in its Trafficking in Persons Report, creating a better image for Thai products.

Shrimp exports are expected to grow from the previous projection of 4 per cent to 12 per cent, due in part to the lower supplies from rivals.

Chicken exports are tipped to grow 5 per cent thanks to higher demand for fresh chicken exports to Japan, but there is low demand for processed chicken in the European Union due to stringent sanitary standards.

However chicken exports to the United Kingdom are expected to grow a lot as a result of the Brexit vote, as the EU and the UK will separately allocate export quotas.

Exports of fruit and vegetables are also forecast to expand 5 per cent, while the export of electronic items is tipped to fall from 4 per cent to 2 per cent for the year due to the fluctuating exchange rate.

Exports of electric appliances are expected to drop from 4 per cent growth to flat growth as some large enterprises have relocated to other countries.