Exports see first drop in 8 months
Exports in March contracted by 10.9%, the first decline in eight months, due to the high base last year.
Poonpong Naiyanapakorn, directorgeneral of the Trade Policy and Strategy Office (TPSO), said exports in March decreased by 10.9% to US$24.9 billion, while imports increased by 5.6% to $26.1 billion, resulting in a trade deficit of $1.16 billion.
It was the first decline in eight months, dragged down by agricultural and agro-industrial products.
In the first quarter, exports declined by 0.2% to $70.9 billion, while imports rose by 3.8% to $75.4 billion, resulting in a trade deficit of $4.47 billion.
Exports of agricultural and agroindustrial products dropped by 5.1% year-on-year to $4.29 billion.
Products that expanded well were rice, rubber, canned and processed seafood, pet food, canned and processed fruit, sauces and preparations, and milk and dairy products.
In contrast, exports of some products decreased, namely cassava products, animal and vegetable fats and oils, sugar, along with fresh, chilled, frozen and dried fruit.
In the first quarter, exports of agricultural and agro-industrial products rose by 0.3%.
Exports of industrial products dipped by 12.3% year-on-year to $19.8 billion.
Exports of significant products that expanded included electrical transformers and components, and wood and wood products.
Meanwhile, exports of some other products also declined, such as automobiles, equipment and parts, oil-related products, computers, computer equipment and parts, air conditioners and components, and semiconductors, transistors and diodes.
In the first quarter, exports of industrial products decreased by 0.3%.
Exports to primary markets decreased by 9.1%. Exports to China, Japan, the EU and Asean decreased by 9.7%, 19.3%, 0.1% and 26.1%, respectively, while exports to the US and Cambodia, Laos, Myanmar and Vietnam increased by 2.5% and 0.5%, respectively.
Exports to secondary markets decreased by 4.3%. Exports to South Asia, the Middle East, Africa, Latin America, Russia and the Commonwealth of Independent States, and the UK fell by 6.1%, 7.3%, 11.9%, 10.2%, 14.2% and 19.3%, respectively, while exports to Australia and Oceania increased by 13.5%.
Exports to other markets decreased by 82.3% as exports to Switzerland decreased by 87.3%.
Mr Poonpong added that exports are likely to be positive in the second quarter, driven by agricultural products, especially fruit during the 2024 harvest which is slated for shipment at the end of this month, along with computers and parts, and products related to clean energy.
Exports are expected to rise by 1-2% in 2024, according to the TPSO. For the remaining months of the year, if the value amounts to $24 billion per month on average, exports would expand by 1%, while if the value amounts to $24.3 billion, exports would expand by 2%.
Chaichan Chareonsuk, chairman of the Thai National Shippers’ Council, said the contraction of exports in March is likely to face minimal impact if looked at by product item such as agricultural products, especially durian whose harvest was delayed until the end of April, causing durian exports to decelerate.
In the second quarter, exports will likely be positive from increased shipments of rice, rubber, animal feed, and automobiles and parts driven by the depreciation of the baht in the range of 36-37 to the US dollar.