Thailand’s export grew 10% year-on-year in January

Thailand’s growing export sector saw a 10% year-on-year increase in January, marking six consecutive months of growth.

The growth in exports, along with rising private investment, consumption, and tourism, is expected to drive the economy to a 2.8% growth in 2024.

• Thailand’s export growth of 10% in January 2024 offers hope for a stronger GDP expansion this year.
• The mounting trade deficit with China poses a significant challenge for Thailand’s economy, threatening local industries and employment.
• The Thai government is urged to address issues related to undervalued imports, exploitation of trade agreements, and smuggling of Chinese goods to protect local industries and prevent further trade imbalances.

However, there are concerns about the mounting trade deficit with China, driven by cheap imports flooding the market.

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Thailand’s trade deficit with China has reached a record high. For the fifth consecutive year, Thailand recorded a trade deficit with China in 2023, amounting to US$36 billion, up from $29 billion in 2022. This deficit arises because Thailand imports more goods from China than it exports. In 2023, Thailand’s imports from China totaled $105 billion, while its exports were only $69 billion.

China is Thailand’s largest trading partner, accounting for 22% of Thailand’s total trade. Thailand primarily imports a wide range of goods from China, including electronics, machinery, and chemicals.

In contrast, its exports to China mainly consist of agricultural products such as rubber, rice, and seafood. The trade deficit is driven by increased imports of intermediate goods, like electronics and machinery, which are used to produce finished goods for export but are not counted as exports themselves.