PUBLISHED: 26 Feb 2025 at 05:45
Thailand’s exports continued to thrive, marking a 13.6% year-on-year increase to US$25.3 billion in January, as reported by the Commerce Ministry. This consistent growth has now reached seven consecutive months.
Imports also saw an uptick of 7.9% year-on-year, totaling $27.6 billion, which led to a trade deficit of $1.88 billion.
Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office, noted that exports from key sectors, excluding gold, oil-related products, and arms, surged by 11.4% year-on-year.
This growth is largely attributed to the improving economies of trading partners, inflation stabilizing at targeted levels, and an uptick in manufacturing activities.
In sectoral performance, agro-industrial exports grew by 3% year-on-year, while agricultural shipments faced a decline of 2.2%.
Remarkable growth was noted in several products, including rubber, which increased by 45.5%, wheat products and prepared foods by 19.5%, and canned and processed fruit by 13.4%. Other notable contributors included pet food (13%), and fresh, chilled, frozen, and processed chicken (12.3%).
Conversely, certain commodities like rice, fresh and dried fruits, tapioca products, beverages, and canned vegetables reported declines.
Exports of industrial products rose by 17% year-on-year, primarily driven by computers and computer parts, gems and jewelry (excluding gold), rubber products, machinery, and air conditioning systems.
However, some industries experienced downturns, including automobiles, iron and steel products, telephone equipment, cosmetics, and semiconductor components.
Poonpong expressed optimism for continued export growth in the first quarter, anticipating that trading partners would increase imports to navigate uncertainties surrounding US trade policies.
There is also potential for enhanced exports to the US as they aim to decrease dependency on imports from China. However, uncertainties regarding US tariff policies could complicate projections, with more clarity expected by April.
Poonpong warned of the potential resurgence of inflation in the US, alongside fluctuating energy prices and freight rates stemming from Russia’s oil export restrictions.
Chaichan Charoensuk, chairman of the Thai National Shippers’ Council, predicts an export growth of 7-10% in the first quarter, driven by heightened trade activity among countries. He noted the necessity for the government to address trade deficits, especially concerning China.
