Thailand’s exports surge in May with agricultural products

Thailand’s exports reached their highest level in 14 months, achieving a 7.2% year-on-year growth in May, largely due to a surge in agricultural products.

Director-General of the Trade Policy and Strategy Office Poonpong Naiyanapakorn announced that the value of exports in May expanded to US$26.2 billion (approximately 960 billion baht), marking a significant gain of 7.2%.

Thai shipments, excluding gold, oil-related products, and weaponry, saw an increase of 6.5%.

This export growth resulted in a trade surplus for the first time in five months, primarily driven by the export of agricultural products.

The global manufacturing sector showed signs of recovery, with the Global Purchasing Managers’ Index indicating ongoing global economic growth.

From January to May, Thai exports rose by 2.6% year-on-year to US$120 billion, while imports increased by 3.5% to US$126 billion, leading to a trade deficit of US$5.46 billion.

In May, Thai shipments of agricultural and agro-industrial products saw a year-on-year increase of 19.4%. Products experiencing substantial growth included fresh, chilled, frozen, and dried fruit (+128%), animal and vegetable fats and oils (+95.7%), rubber (+46.6%), pet foods (+39.2%), milk and dairy products (+16.7%), processed chicken (+10.2%), canned and processed fruit (+8.8%), and sauces and preparations (+6.0%).

Conversely, exports of some products declined, including sugar (-46.1%), cassava products (-16.2%), rice (-4.5%), and canned and processed seafood (-0.6%).

During the first five months of 2024, exports of agricultural and agro-industrial products increased by 4.7%.

Industrial product exports registered a 4.6% year-on-year increase in May. Products that expanded included telephones, equipment, and parts (+111%), computers, equipment, and parts (+44.4%), copper and copper products (+33.9%), wood and wood products (+16.7%), and machinery and mechanical components (+12.4%).

However, shipments of some industrial products declined, with decreases in semiconductors, transistors, and diodes (-27.6%), motorcycles and components (-23.6%), iron and steel (-14.1%), circuit boards (-11.9%), and rubber products (-8.8%).

Industrial product exports for the first five months of 2024 increased by 2.4%.

The Commerce Ministry expects exports in June to continue growing, driven by durian.

The ministry also anticipates increased product shipments to India for the remainder of the year.

Chairman of the Thai National Shippers’ Council Chaichan Chareonsuk predicts that exports will grow by 2% in the first half of the year, attributing this to a high base effect in May.

Nevertheless, Chaichan expressed concerns over ongoing geopolitical tensions in the Middle East, which are raising freight costs and transport times, potentially escalating into a trade war in the latter half of the year, reported Bangkok Post.