Thailand’s June exports see marginal contraction in dollar terms
Thai exports contracted by 0.3 per cent in June year on year but the overall export performance in the first half of the year remains positive, data released on Friday by the Commerce Ministry’s Trade Policy and Strategy Office showed.
According to the international trade report, Thailand's exports in June 2024 were valued at US$24.769 billion, down 0.3% compared to the same period in 2023. Imports for the month stood at $24.578 billion, resulting in a trade surplus of $218 million.
Despite the June contraction, exports in the first six months of 2024 expanded by 2%, reaching US$145.290 billion. Imports during the same period were valued at $150.532 billion, an increase of 3% compared to the first half of 2023. There was a trade deficit of $5.242 billion in the first half.
Poonpong Naiyanapakorn, director of the Trade Policy and Strategy Office, attributed the June export contraction to seasonal factors, particularly the end of the fruit cultivation season, which led to decreased output and slower exports.
In baht terms, the June trade performance showed growth. Exports were valued at 892.766 billion baht, expanding by 5% compared to the same month of the previous year. Imports were valued at 895.256 billion baht, a 5.6% increase.
Exports were valued at 5.19 million baht in the first half of 2024, expanding by 7.4% compared to the same period last year. Imports stood at 5.43 million baht, resulting in a trade deficit of 246,000 baht.
Overall, the Commerce Ministry remains optimistic about Thailand's export outlook for 2024, citing positive factors such as strong agricultural and food product exports and growth in the digital economy sector.
However, several risk factors were highlighted, including drought conditions affecting agricultural output, ongoing geopolitical conflicts and wars in various countries, and an expected increase in freight rates in the second half of the year.
The ministry also noted slow economic recovery in some trading partner countries and political uncertainty due to elections in multiple countries, potentially delaying investments.
The report also highlighted growing concerns about the trend of using trade barriers in global trade. Despite these challenges, the Commerce Ministry maintains that Thailand's exports in 2024 are likely to expand in line with targets, supported by the strong performance of agricultural and food products, as well as growing demand in the digital economy sector.
