Exports in July expanded by 15.2%, the highest growth rate in 28 months, as inflation eased and the purchasing power of trading partners rose.
Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office (TPSO), said exports in July increased by 15.2% to US$25.7 billion (938 billion baht), driven by cooling global inflation, which significantly increased consumer purchasing power.
Shipments in the real sector, excluding gold, oil-related products and weaponry, increased by 9.3%.
Increases in employment and wage adjustments for major trading partners, particularly in Europe, led to a recovery in consumption, positively impacting exports.
Major markets that have shown a strong recovery include the US, China, Southeast Asia and the European Union.
This aligns with the International Monetary Fund's world economic growth outlook, which suggests a lift from China's economic recovery, driven by strong export growth, and Europe's rebound from a low point.
Imports in July increased by 13.1% to $27.1 billion, resulting in a trade deficit of $1.37 billion.
In the first seven months of 2024, exports increased by 3.8% to $171 billion, while imports rose by 4.4% to 178 billion, resulting in a trade deficit of $6.62 billion.
Exports of agricultural and agro-industrial products increased by 8.7% year-on-year to $4.36 billion, rebounding after a contraction the previous month.
Products that expanded well were rubber, rice, fresh, chilled, frozen and processed chicken, canned and processed seafood, pet food, and animal and vegetable fats and oils.
In contrast, exports of some products decreased, namely fresh, chilled, frozen and dried fruit, tapioca products, sugar and beverages.
Exports of industrial products increased by 15.6% year-on-year to $20.3 billion, rebounding after a contraction the previous month.
Exports of significant products that expanded included oil-related products, computers, equipment and parts, rubber products, telephones, equipment and parts, and air conditioners and components.
Meanwhile, exports of some other products also declined, such as automobiles, equipment and parts, circuit boards, semiconductors, transistors and diodes, and internal combustion engines and parts.
Exports are expected to rise by 1-2% in 2024, said Mr Poonpong.
The TPSO expects exports to gradually recover in 2024, in line with the improving global economy and trade environment, as well as signs of recovery in global industrial production.
Moreover, the growth of the digital economy is anticipated to support related products throughout the year.
However, there are risks that could pressure exports, including ongoing geopolitical conflicts and uncertainty in economic and trade policies following elections in several key countries.
The Ministry of Commerce will continue to closely monitor these situations.
Chaichan Chareonsuk, chairman of the Thai National Shippers' Council, said even though sea transport conditions are returning to normal with lower freight costs compared to the first half of the year, the probability of the baht's appreciation in the fourth quarter may affect the export market.