Thai Exports Strengthen, Driven by Electronics Product Cycle Recovery

In August 2024, Thailand’s exports increased by 7% year-over-year, reaching USD 26.18 billion, fueled by robust demand for electronics, rice, and rubber. Concurrently, imports experienced a rise, leading to a trade surplus.

Robust Growth in Thai Exports

In August 2024, Thailand’s exports reached USD 26.18 billion, showing a remarkable 7% year-on-year increase, surpassing earlier forecasts from SCB EIC and Reuter Poll. This growth follows a significant 15.2% rise in July, culminating in total exports of USD 197.19 billion for the year’s first eight months—reflecting a 4.2% growth rate. Key contributors to this growth included computers and parts, which surged by 74.7%, alongside robust performances from rubber and rice.

Positive Trade Balance Despite Import Growth

Thai imports also expanded to USD 25.92 billion, up 8.9%, although at a slower pace than expected. This positive trade balance of USD 264.9 million defied predictions of a deficit, as strong exports outperformed lower import growth. Notable import sectors included raw materials and capital goods, while consumer goods saw a slight contraction. Thailand’s trade balance remains in a deficit for the year, totaling USD -6.35 billion.

RelatedArticles

Thai Cabinet Approves Tax Initiatives to Stimulate Economic Growth

December 27, 2024

Thai Economy Set to Grow in Q4 but Likely to Face Challenges from Trump 2.0 in 2025

December 24, 2024

Thailand’s Consumer Outlook: Stable Medium-Term Prospects Despite Short-Term Political Challenges

December 17, 2024

S&P Confirms Thailand’s BBB+ Credit Rating, Stable Outlook Maintained

December 16, 2024

Outlook for Future Export Growth

Looking ahead, SCB EIC anticipates continued export expansion, projecting a 2.6% growth rate for 2024. Factors supporting this optimism include global economic growth and a recovering electronics sector. However, potential risks such as flooding, the strengthening of the Thai baht, and changes in India’s rice export policies could impact future results. Overall, while short-term growth may exceed expectations, long-term challenges related to competitiveness remain.

Source link