Thai export extravaganza: Gold rush as figures set at US$290bn
In a dazzling economic twist, Thai exports are on track to shatter the 2% growth target, soaring to an unprecedented US$290 billion this year. Poonpong Naiyanapakorn, the Trade Policy and Strategy Office (TPSO) chief, credits the surge to booming demand for all things agricultural, food-related, and electronic, thanks to the economic bounce-back in powerhouses like the United States and European Union.
September figures are already shining, with export values jumping 1.1% to US$25.9 billion, while imports shot up 9.9% to US$25.5 billion. The result? A handy trade surplus of US$394 million, marking a two-month winning streak.
Year-to-date, exports have climbed 3.9%, hitting US$223 billion, although imports aren’t far behind at US$229 billion, leaving a trade deficit of US$5.96 billion trailing in their wake.
Agricultural goodies are taking the cake with a 3.5% year-on-year hike. While the likes of rice, rubber, and processed chicken are flying off the shelves, fresh fruits and veggies are seeing a dip. Nevertheless, agri-exports are still up a solid 5.4% over the past nine months.
On the industrial front, a 2% boost year-on-year is down to soaring shipments of computers, rubber products, and air conditioners. Sadly, the auto industry and gems and jewellery are feeling the pinch. Yet, industrial exports have climbed 3.8% so far this year, said an optimistic Poonpong.
“If the value of exports averages US$22.5 billion per month, we’ll hit a new peak of US$290 billion, eclipsing last year’s record of US$287 billion.”
Looking to 2024, the Ministry of Commerce is confident despite looming challenges like US elections, geopolitical rumbles, a stubbornly strong baht, and hiccups in China’s economic recovery, reported Bangkok Post.
Echoing this upbeat forecast, Chaichan Charoensuk, chairman of the Thai National Shippers’ Council, is betting on a 2% export rise to a whopping US$290 billion (10 trillion baht) this year.
“The baht’s appreciation to 33.5-33.8 against the dollar isn’t fazing us. If it weakens to 33-34 baht or beyond, it’ll give exports an extra kick, a trend that could roll into early 2025.”
Frequently Asked Questions
Here are some common questions asked about this news.
Why are agricultural and food products driving Thailand’s export growth?
Rising global demand and economic recovery in key markets have boosted Thailand’s agricultural and food product exports.
How might geopolitical tensions impact Thailand’s export growth in the coming months?
Geopolitical tensions could disrupt trade routes and market stability, potentially limiting export growth.
What if the baht depreciates further against the dollar? How could this affect Thailand’s exports?
A weaker baht could make Thai exports more competitive globally, potentially enhancing export volumes.
Why is the ongoing economic recovery in the US and EU crucial for Thailand’s exports?
The US and EU are major trading partners; their economic recovery boosts demand for Thai goods.
How might India’s rice export policies influence Thailand’s rice export sector?
Changes in India’s policies could reduce global rice supply, increasing demand and prices for Thai rice exports.
