Thai exports faced a decline for the first time in three months in June, attributed to a slowdown in agriculture and food sales, the commerce ministry revealed on Friday. Despite this setback, the ministry maintains an optimistic outlook for overall export growth in 2024.
In June, exports fell 0.3% year-on-year, falling short of analysts’ expectations of a 2.6% increase as per a Reuters poll. This downturn followed a 7.2% growth recorded in May on an annual basis. Key export sectors such as agro-industrial products experienced a 4.8% decline, while segments including auto parts, computer accessories, and jewelry witnessed growth.
Imports, on the other hand, saw a marginal increase of 0.3% in June compared to a year earlier, below the 3% growth projected in the survey. Thailand registered a trade surplus of $0.22 billion in June, lower than the anticipated surplus of $0.60 billion.
For the first half of 2024, exports rose by 2.0% year-on-year while imports increased by 3.0%, resulting in a trade deficit of $5.24 billion for the period. The ministry anticipates a resurgence in export growth in July and maintains its export growth forecast for the year at 1% to 2%.
Poonpong Naiyanapakorn, the head of the ministry’s Trade Policy and Strategy Office, expressed the potential for a milestone year if Thailand reaches 10 trillion baht in exports, highlighting the significance of favorable economic conditions in key trading partner countries like China, the U.S, Europe, and India.
Despite challenges, such as decreased exports to China and Japan, the sector saw notable growth in rice exports in June by volume and value. The weak baht and reduced freight rates were cited as supporting factors benefiting Thai exports, as acknowledged by Chaichan Chareonsuk, chairman of the Thai National Shippers’ Council.
