Thailand's export growth plunged to -6.5% in March

Import growth rose to 25.6%, resulting in a trade balance deficit of –US$4.6b.

Full recovery for the manufacturing sector has yet to happen, possibly coming in only on Q3 2012. Analysts project 2012 growth to disappoint.

Here's more from OCBC Treasury Research:

Export growth slumped back to -6.5% yoy in March, below the forecast of -2.3%, while import growth came in robust at 25.6% yoy, leading to the trade balance deeply in the deficit at –US$ 4.6bn.

The poor export growth showing for March is a clear indication that the road to normalcy is not going to be as smooth-sailing as some have earlier expected. As it is, the manufacturing sector is still likely to fully recover only in Q3 2012. There is some chance for 2012 growth to come in below expectations.

Nevertheless, while the huge trade deficit for March may be a near-term weakness from the flows perspective front, it does signal that domestic demand has picked up quite significantly since the start of the year.