27-9-2023 (BANGKOK) Thai exports have experienced an unexpected resurgence, marking the first growth in 11 months. The upturn can be attributed to positive signals from the global manufacturing sector, robust consumer spending, and an expanding service sector among trading partners. The Commerce Ministry has attributed this growth to the promotion of clean energy policies, increased demand for technological products, and the relative depreciation of the baht, all of which have had a positive impact on exports.
According to the ministry’s report, the value of exports, cleared by customs, rose by 2.6% year-on-year in August, reaching $24.3 billion. In contrast, imports contracted by 12.8% to $23.9 billion, resulting in a trade surplus of $360 million.
When excluding gold, oil-related products, and weaponry, Thai exports in the real sector experienced a growth rate of 3.9% compared to August of the previous year. Agricultural and agro-industrial product shipments contracted by 1.5% to $4.03 billion, while exports of industrial products expanded by 2.5% to $19.2 billion.
During the first eight months of this year, Thai exports recorded a decline of 4.5%, totaling $188 billion, while imports decreased by 5.7% to $196 billion, leading to a trade deficit of $7.92 billion.
Permanent Commerce Secretary Keerati Rushchano highlighted Thailand’s relatively strong export performance in August compared to regional peers, as several countries, including India, Taiwan, South Korea, China, Singapore, Malaysia, and Indonesia, all recorded declines in their exports.
Keerati attributed the increase in Thai exports to the growth of agricultural products, which experienced an uptick of 4.2% after four months of decline. Notable increases were observed in fresh and frozen fruit (99.8%), rice (10.8%), food seasonings (28.6%), canned and processed vegetables (26.5%), milk and dairy products (13.2%), and fresh, frozen, and dried vegetables (22.8%).
The export of industrial products also rebounded after three months of contraction. Key products that posted growth included automobiles and auto parts (5.2%), electronic circuit boards (39.8%), machinery and components (6.4%), telephones and telephone parts (36.9%), semiconductor transistors and diodes (74.5%), electric transformers and components (59.1%), and computers and computer parts (26.9%).
Keerati expressed optimism that the upward trend in exports would continue in September, although he acknowledged that the figures from September 2022 were particularly robust at $25.0 billion. It remains uncertain whether exports will exceed $20 billion this September, but increased orders indicate that the figures from October to December are expected to be positive.
“We maintain our annual export target of 1-2% growth. We are making concerted efforts to avoid a contraction,” said Keerati. “Thailand’s private sector plays a significant role in driving exports, and collaboration between the public and private sectors is crucial in supporting export activities.”
Chaichan Chareonsuk, Chairman of the Thai National Shippers’ Council, expressed optimism for a turnaround in exports during the fourth quarter of this year. However, he believes that shipments are likely to contract by 1% overall for the year.
The 2.6% increase in August exports comes after 10 consecutive months of decline, starting from October 2022, with contractions of 4.2% in that month, 5.6% in November 2022, 14.3% in December 2022, 4.6% in January 2023, 4.8% in February 2023, 4.2% in March 2023, 7.7% in April 2023, 4.6% in May 2023, 6.5% in June 2023, and 6.2% in July 2023.
“Given these figures, it is indeed challenging for Thailand to achieve positive territory in terms of outbound shipments for the remaining months,” commented Chaichan.
