Thai exports rebounded to growth in April, following a sharp 10.9% decline in March, driven by the improving global economy and an easing of the average inflation rate worldwide.
The Commerce Ministry reported on Thursday customs-based exports expanded by 6.8% year-on-year in April to US$23.3 billion (834 billion baht), while shipments in the real sector (excluding gold, oil-related products, and weaponry) increased by 11.4%.
Imports increased by 8.3% in April to $24.9 billion, resulting in a trade deficit of $1.64 billion. For the first four months of 2024, the country's exports gained 1.4% to $94.3 billion, while imports increased by 4.9% to $100 billion, resulting in a trade deficit of $6.11 billion.
Exports of agricultural and agro-industrial products increased by 2% year-on-year in April to $4.94 billion, led by rice (+91.5%), rubber (+36.2%), canned and processed seafood (+14.8%), pet foods (+52.9%), processed chicken (+17.2%), drinks (+10.5%), canned and processed fruit (+21.5%), and sauces and preparations (+23.2%).
Industrial product shipments rose by 9.2% to $17.5 billion, led by automobiles, equipment and auto parts (+20.4%), computers, equipment and parts (+62%), machinery and mechanical components (+58.8%), air conditioners and components (+12.9%), iron and steel (+23.3%), and electrical transformers and components (+32.4%).
Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office, attributed the April uptick to easing inflation conditions among trading partners compared with the previous year, expanding industrial production worldwide as orders increased, and significant demand for agricultural products driven by rising global market prices.
"The trend is expected to continue increasing in May, particularly for fruit exports, as it is the season for durian. Export trends for the second quarter are forecast to increase by 0.81%, and the Commerce Ministry maintains its export target at 1-2%, barring any unforeseen risks such as geopolitical tensions in the Middle East which warrant close monitoring," he said.
In the first quarter, the value of exports declined by 0.2% to $70.9 billion, while the value of imports rose by 3.8% to $75.4 billion, resulting in a trade deficit of $4.47 billion.
According to Mr Poonpong, risk factors exerting pressure on export prospects include Thailand's hot and dry weather conditions, the economic slowdown in China and Japan, and the conflict in Myanmar's Myawaddy.
Chaichan Chareonsuk, chairman of the Thai National Shippers' Council (TNSC), said Thai exports in the second quarter are expected to increase by 1%, as rice, rubber, auto parts, and electronic components continue to drive momentum.
However, a significant risk is geopolitical issues in the Red Sea, leading to volatile, rising shipping costs, said Mr Chaichan.
He also called on the meeting of commercial counsellors from around the world to be held in Thailand next week to help expedite efforts to reduce production costs and seek new markets with potential, as traditional markets such as China and the US are decelerating.
In addition, the government is being urged to rev up the promotion of soft power products in the food and textile sectors.