Containers stacked on a cargo ship in port. The value of customs clearance of exports rose by 2.6% year-on-year in August to $24.3 billion.
Thai exports unexpectedly rebounded back to growth for the first time in 11 months, supported by improving signals from the global manufacturing sector, positive consumer spending, and an expanding services sector among trading partners.
Growth has been boosted by promoting clean energy policies and increasing demand for technology products, while the relative decline in the value of the baht has had a positive impact on exports, according to the Ministry of Commerce.
The ministry reported yesterday that the value of customs clearance for exports rose by 2.6% year-on-year in August to $24.3 billion, while imports contracted by 12.8% to $23.9 billion, resulting in a trade surplus of $360 million.
Thai exports in the real sector (excluding gold, oil-related products and weapons) rose by 3.9% compared to August last year.
Shipments of agricultural and industrial products contracted 1.5% during the month to $4.03 billion, while exports of industrial products expanded 2.5% to $19.2 billion.
In the first eight months of this year, Thai exports fell by 4.5% to $188 billion, while imports fell by 5.7% to $196 billion, resulting in a trade deficit of $7.92 billion.
“Thailand’s exports in August performed relatively well compared to other countries, with many of its regional peers recording declines. India’s exports fell by 6.9%, Taiwan by 7.3%, South Korea by 8.3%, China by 8.8%, and Singapore by 12.6%,” he said. Permanent Trade Minister Kirati Rushanu said Malaysia and Indonesia by 21.2%.
He attributed the increase in Thai exports to agricultural products, which grew by 4.2%, the first increase in four months. Noticeable increases included fresh and frozen fruits by 99.8%, rice by 10.8%, food spices by 28.6%, canned and processed vegetables by 26.5%, milk and its derivatives by 13.2%, and fresh, frozen and dried vegetables by 13.2%. 22.8%.
Shipments of industrial products also grew for the first time in three months. The main products that recorded growth included cars and auto parts, which increased by 5.2%, electronic circuit boards by 39.8%, machines and their components by 6.4%, telephones and their parts by 36.9%, transistors and semiconductor diodes by 74.5%, and electrical transformers and their components. . by 59.1%, and computers and their parts by 26.9%.
Mr Kirati expressed optimism that the export trend will continue in September. However, shipments in September 2022 were strong at $25.0 billion.
He said it is unclear whether exports will exceed $20 billion in September this year, but the numbers from October to December are expected to be positive based on increased orders.
“Our annual export target remains unchanged at 1-2% growth. We are working hard to avoid deflation,” Kirati said. “The private sector in Thailand plays an important role in driving exports, and cooperation between the public and private sectors is crucial in supporting export activities.”
The private sector sees the potential for a turnaround in exports in the fourth quarter of this year, said Chaichan Charonsuk, president of the Thai National Council of Shipping Companies. However, he said it was very likely that shipments would contract by 1% this year.
The 2.6% increase in exports in August followed a decline for ten consecutive months, starting in October 2022, with a 4.2% contraction in that month; 5.6% in November 2022; 14.3% in December 2022; 4.6% in January 2023; 4.8% in February 2023; 4.2% in March 2023; 7.7% in April 2023; 4.6% in May 2023; 6.5% in June 2023; And 6.2% in July 2023.
“These numbers make it very difficult for Thailand to shift outbound shipments into positive territory in the remaining months,” Qishan said.