Thai exports surge to $26.22 billion in May, marking a 14-month high

Thai exports in May hit the highest value in 14 months, coming in at US$26.22 billion (961.75 billion baht) and marking a 7.2% increase.

Poonpong Naiyanapakorn, director of the Office of Trade Policy and Strategy, said on Friday that this surge resulted in a trade surplus for the first time in five months. Exports, excluding oil-related products, gold and military products, grew by 6.5%.

Meanwhile, imports in May were valued at $25.56 billion, marking a drop of 1.7%, leading to a trade surplus of $656 million. For the first five months of 2024, total exports reached $120.49 billion, up by 2.6%.

The significant growth in exports was primarily driven by the agricultural sector, with a large volume of produce entering the market. Additionally, the global manufacturing sector showed a strong recovery, as indicated by the rising Global PMI (Purchasing Managers’ Index), which signifies continuous global economic growth.

The Commerce Ministry maintains a positive outlook this year, expecting exports to continue performing well and achieving an annual growth target of 1-2%. This optimism is supported by the steady recovery of the global economy.

The World Trade Organisation (WTO)’s projection is that global trade volume will grow by 2.6% compared to the previous year, as inflationary pressures ease and central banks around the world likely lower policy interest rates. This will boost consumer purchasing power and further stimulate global production recovery.

However, there are still risks related to geopolitical tensions in the Middle East and rising freight costs on certain shipping routes, which could negatively impact Thai exports in the second half of the year. Additionally, the results of elections in several countries need to be closely monitored as they may affect international trade policies that could impact Thailand’s exports.