Thailand’s Exports Contract by 0.3% in June, But First Half Performance Remains Strong

(CTN News) – Thailand exports fell 0.3 percent year on year in June, but overall export performance in the first half of the year remained favorable, according to figures issued on Friday by the Commerce Ministry’s Trade Policy and Strategy Office.

According to the foreign trade report, Thailand’s exports in June 2024 were valued at US$24.769 billion, a 0.3% decrease from the same time in 2023. Imports for the month totaled $24.578 billion, yielding a trade surplus of $218 million.

Despite the June decrease, exports in the first half of 2024 increased by 2% to US$145.290 billion. Imports for the same period totaled $150.532 billion, up 3% from the first half of 2023. The trade imbalance was $5.242 billion in the first half.

Poonpong Naiyanapakorn, head of the Trade Policy and Strategy Office, ascribed the June export reduction to seasonal circumstances, specifically the end of the fruit farming season, which resulted in reduced output and slower shipments.

In baht terms, the June trading performance improved. Exports totaled 892.766 billion baht, up 5% from the same month last year. Imports were valued at 895.256 billion baht, representing a 5.6% rise.

Exports were valued at 5.19 million baht in the first half of 2024, up 7.4% from the same period last year. Imports totaled 5.43 million baht, leaving a trade imbalance of 246,000 baht.

Thailand’s Resilience Amidst Global Trade Challenges

Overall, the Commerce Ministry is bullish about Thailand’s export prospects for 2024, noting factors such as robust agricultural and food product exports and growth in the digital economy.

However, many risk factors were identified, including drought conditions impacting agricultural output, ongoing geopolitical crises and wars in various countries, and an anticipated increase in freight prices in the second half of the year.

The ministry also observed a poor economic recovery in some trading partner nations, as well as political instability caused by repeated elections, which could postpone investment.

The research also expressed increased concern about the trend of imposing trade obstacles in global trade. Despite these hurdles, Thailand’s Commerce Ministry believes that exports in 2024 will increase in accordance with expectations, thanks to good performance in agricultural and food items, as well as rising demand in the digital economy sector.

Source: Nation Thailand