In July, exports posted their highest growth in 28 months, surging by 15.2%, as easing inflation and improved purchasing power among key trading partners fueled demand.

 

Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office (TPSO), reported that exports reached US$25.7 billion (938 billion baht) in July, largely driven by declining global inflation, which bolstered consumer spending capacity. Excluding gold, oil-related products, and weaponry, real sector exports increased by 9.3%.

 

Key factors contributing to this growth included rising employment and wage adjustments among major trading partners, particularly in Europe, which led to stronger consumer demand, boosting exports. Major markets showing strong recoveries included the US, China, Southeast Asia, and the European Union.

 

This trend aligns with the International Monetary Fund’s economic outlook, which points to a lift from China’s export-driven recovery and Europe’s rebound from earlier challenges.

 

Imports in July rose by 13.1% to $27.1 billion, resulting in a trade deficit of $1.37 billion. Over the first seven months of 2024, exports grew by 3.8% to $171 billion, while imports increased by 4.4% to $178 billion, creating a cumulative trade deficit of $6.62 billion.

 

Agricultural and agro-industrial product exports rebounded in July, rising 8.7% year-on-year to $4.36 billion, led by strong performance in rubber, rice, poultry, seafood, pet food, and edible oils. However, declines were noted in certain categories, including fruit, tapioca, sugar, and beverages.

 

Industrial product exports saw a significant year-on-year increase of 15.6% to $20.3 billion, recovering from previous declines. Key export drivers included oil-related products, electronics, and air conditioning equipment, while sectors like automobiles and semiconductors experienced decreases.

 

Mr. Poonpong expects exports to rise by 1-2% in 2024, supported by global economic recovery, industrial production improvements, and growth in the digital economy. However, risks such as geopolitical tensions and uncertainties in economic and trade policies following elections in key countries could weigh on future export performance. The Ministry of Commerce will continue to monitor these risks closely.

 

Meanwhile, Chaichan Chareonsuk, chairman of the Thai National Shippers’ Council, noted that although sea freight costs have eased, potential baht appreciation in the fourth quarter could pose challenges for exports.

 

Source: Bangkok Post

 

Yours sincerely,

The editorial team at Invest Bangkok Property