June exports fall 0.3%, first decline in three months in Thailand

Thai exports experienced a decline for the first time in three months in June, primarily due to reduced sales in the agriculture and food sectors, as reported by the Commerce Ministry on Friday. Despite this dip, the ministry remains optimistic about overall export growth in 2024.

June exports decreased by 0.3% compared to the same month last year, falling short of analysts’ predictions of a 2.6% increase, according to a Reuters poll. This follows a significant rise of 7.2% in May from the previous year.

Exports are a fundamental component of Thailand’s economy, which is the second-largest in Southeast Asia. The Commerce Ministry noted that shipments of agro-industrial products declined by 4.8% annually in June. Conversely, exports of auto parts, computers and accessories, and jewellery saw an increase.

Imports in June rose by 0.3% from a year earlier, which was below the anticipated 3% rise from the poll.

Thailand reported a trade surplus of US$0.22 billion in June, in contrast to the forecast surplus of US$0.60 billion.

For the first half of 2024, exports increased by 2.0% compared to the same period in 2023, while imports rose by 3.0%. The trade deficit for this period stood at US$5.24 billion.

The ministry remains hopeful about export growth in July and has maintained its annual export growth target at 1% to 2%.

This could be a record year if we hit 10 trillion baht (US$277 billion) as stated by Poonpong Naiyanapakorn, head of the ministry’s Trade Policy and Strategy Office. He emphasised that the economic health of key trading partners, including China, the United States, Europe, and India, would be crucial.

Shipments to the United States rose by 5.4% in June from the previous year, while exports to China and Japan fell by 12.3%.

Rice export volumes in June surged by 78.7% year-on-year to 1.02 million metric tonnes, with a value increase of 96.6% to US$644 million.

The weak baht also helped exports, noted the chairman of the Thai National Shippers’ Council, Chaichan Chareonsuk, adding that lower freight rates contributed as well, reported Bangkok Post.