Exports in July grew by 15.2%, marking the highest growth rate in 28 months, thanks to easing inflation and increased purchasing power among trading partners.
Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office (TPSO), reported that July exports reached US$25.7 billion (938 billion baht), driven by lower global inflation, which significantly enhanced consumer purchasing power.
Shipments in the real sector, excluding gold, oil-related products, and weapons, rose by 9.3%.
Increased employment and wage adjustments among major trading partners, particularly in Europe, contributed to a rebound in consumption, positively affecting export performance.
Key markets demonstrating robust recovery include the US, China, Southeast Asia, and the European Union.
This trend is consistent with the International Monetary Fund’s forecast of global economic growth, which anticipates a boost from China’s recovery, fueled by strong export growth, and a rebound in Europe from its recent low.
Imports in July surged by 13.1% to $27.1 billion, leading to a trade deficit of $1.37 billion.
In the first seven months of 2024, exports rose by 3.8% to $171 billion, while imports increased by 4.4% to $178 billion, resulting in a trade deficit of $6.62 billion.
Exports of agricultural and agro-industrial products grew by 8.7% year-on-year to $4.36 billion, bouncing back after a decline the previous month.
Key products that saw growth included rubber, rice, fresh, chilled, frozen and processed chicken, canned and processed seafood, pet food, and animal and vegetable fats and oils.
Conversely, exports of certain items decreased, such as fresh, chilled, frozen and dried fruit, tapioca products, sugar, and beverages.
Industrial product exports climbed by 15.6% year-on-year to $20.3 billion, recovering from a previous downturn.
Significant products that experienced growth included oil-related items, computers, equipment and parts, rubber products, telephones, equipment and parts, and air conditioners and components.
However, exports of some products declined, including automobiles, equipment and parts, circuit boards, semiconductors, transistors and diodes, as well as internal combustion engines and parts.
Poonpong projected that exports are expected to rise by 1-2% in 2024.
The TPSO anticipates a gradual recovery in exports in 2024 due to an improving global economy and trade environment, coupled with signs of recovery in global industrial production.
Additionally, growth in the digital economy is expected to benefit related products throughout the year.
Nevertheless, there are potential risks that could exert pressure on exports, including ongoing geopolitical conflicts and uncertainties in economic and trade policies following elections in several significant countries.
The Ministry of Commerce will continue to closely monitor these developments.
Chaichan Chareonsuk, chairman of the Thai National Shippers’ Council, noted that while maritime transport conditions are returning to normal with lower freight costs compared to the first half of the year, the potential appreciation of the baht in the fourth quarter could impact the export market.
