Thai exports jumped 13.2% year-on-year to US$19.9 billion (676 billion), the highest in more than four years, as the global economic recovery helped boost demand and shrug off the impact of the baht's appreciation, according to the Commerce Ministry.
Pimchanok Vonkorpon, director-general of the ministry's trade policy and strategy office, said the rise in May exports was far above the 8.4% growth in April, driven by increases in demand for several products.
She said agricultural and agribusiness exports rose 17.6% year-on-year in May, fetching $3.24 billion, boosted by higher shipments of rubber, sugar, rice, vegetables and fresh fruits -- particularly durian, shipments of which jumped 159.3% from the same period last year.
Exports of industrial products rose by 12.8% to $15.6 billion, led by processed rubber, automobiles, electric circuits, computers and components, while jewellery remained in negative territory, Ms Pimchanok said.
May imports rose 18.2% year-on-year to $19 billion, yielding a trade surplus of $994 million.
The rise in Thai exports bucked expectations. Exporters had been worried about the stronger baht, which continues to rise against the US dollar and make the prices of Thai products less competitive.
The baht, which has risen more than 5% this year, nudged higher yesterday, continuing its surge against the dollar.
Don Nakornthab, senior director at the Bank of Thailand's macroeconomic and monetary policy department, said May's reading of 13.2% growth in Thai merchandise exports is moderately higher than what the central bank expected.
The Bank of Thailand expects Thai merchandise exports to grow 2.2% and GDP to grow 3.4% this year.
"The 2.2% growth [in merchandise exports] seems to be somewhat low, and we [the central bank] are currently waiting for the detailed figures from the Commerce Ministry to be considered in revising the forecast," Mr Don said.
Ganyaphad Tantipipatpong, chairwoman of the Thai National Shippers' Council, said Thai exports are trending upward and June exports are also expected to rise further as orders in several sectors rise.
But a source at the International Trade Promotion Department said the rise in May exports was due largely to a low-base effect. Exports in May 2016 totalled just $17.6 billion, making the rise seem substantial by comparison.
For the first five months of 2017, exports rose 7.2% to $93.26 billion, while imports increased accordingly by 15.2% to $88.21 billion, yielding a trade surplus of $5.05 billion for the period.
In major markets, shipments surged 25.7% to Japan, 13.3% to the EU and 8.8% to the US.
Exports to China rose 28.3%, and exports to five Asean countries (Malaysia, Indonesia, the Philippines, Singapore and Brunei) were up 14.2%.
Shipments to South Asia rose by 18%, followed by a rise of 14.3% to the combined markets of Cambodia, Laos, Myanmar and Vietnam.
In May, shipments to the Middle East increased by 11.7%, largely because of a rise in demand for rice, frozen seafood and mobile phones. But exports of automobiles and air conditioners to the region shrank.
As the baht appreciates, the Commerce Ministry is maintaining its 2017 export target of 5%, based on expectations that the global economy will continue to recover and push demand for exports higher.
Ms Pimchanok said the Commerce Ministry was still cautious about possible negative factors and will monitor them closely, particularly protectionist US trade policies, the volatile foreign exchange rate and weak oil prices.