Thai exports spring back to life: A global manufacturing and clean energy surge
After 11 months in decline, Thai exports have made a surprising return to growth, largely due to a resurgence in global manufacturing, consumer spending and a thriving service sector among trading partners. This upturn has been further fuelled by the promotion of clean energy policies, increased demand for technological products and the relative depreciation of the baht, according to the Commerce Ministry.
The ministry revealed yesterday that in August, the customs-cleared value of exports grew by 2.6% year-on-year, totalling US$24.3 billion. Meanwhile, imports shrank by 12.8% to US$23.9 billion, yielding a trade surplus of US$360 million.
Excluding gold, oil-related products and weaponry, Thai exports in the real sector grew by 3.9% from August last year. Agricultural and agro-industrial product shipments decreased by 1.5% for the month to US$4.03 billion, while industrial product exports saw a 2.5% increase to US$19.2 billion.
Commerce Secretary Keerati Rushchano noted that Thailand’s August exports outperformed several regional peers, who recorded declines. For instance, India’s exports fell by 6.9%, Taiwan’s by 7.3%, South Korea’s by 8.3%, China’s by 8.8%, Singapore’s by 12.6%, and Malaysia and Indonesia’s by 21.2%.
Keerati highlighted that the Thai export boost was due in part to a 4.2% growth in agricultural products, a first in four months.
Significant increases were seen 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 first growth in three months was also recorded in industrial product shipments, with automobiles and auto parts increasing by 5.2%, electronic circuit boards by 39.8%, machinery and components by 6.4%, telephones and telephone parts by 36.9%, semiconductor transistors and diodes by 74.5%, electric transformers and components by 59.1%, and computers and computer parts by 26.9%.
Despite the robust shipments in September last year, amounting to $25.0 billion, Keerati remains hopeful for continued export growth this September.
He noted, however, that while it remains uncertain if Thai exports will exceed US$20 billion this September, the numbers from October to December are expected to be encouraging, based on the increase in orders, reported Bangkok Post.
“Our annual export target remains unchanged at 1 to 2% growth. We are working hard to avoid a contraction. 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.”
However, Chaichan Chareonsuk, Chairman of the Thai National Shippers’ Council, suggests a potential contraction of 1% in shipments this year, despite foreseeing a turnaround in Thai exports in the fourth quarter.
He pointed out that the 2.6% increase in exports in August followed a decline for 10 consecutive months, making it difficult to achieve positive territory in the remaining months.
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