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Global economy recovers, Thai export sector surges to 18-month high
Thailand's international trade situation in January 2024, Thai exports were valued at 22,649.9 million US dollars, or 784,580 million baht.
Thai export sector
By “Keerati Ratchano”, Permanent Secretary of the Ministry of Commerce, announced the situation of Thailand’s international trade. It was found that in January 2024, Thailand’s exports were worth 22,649.9 million US dollars, or 784,580 million baht, expanding continuously for the 6th month at 10%.
This is considered the strongest increase in 18 months. It is the most interesting economic figure for the “Thai export sector”. Excluding oil-related products, gold, and military equipment, it expanded by 9.2%, reflecting that Thai exports continue to expand.
Consistent with many Asian countries, following the global trade trend that has begun to recover from inflation, coupled with the factor of low export base value in the same period of the previous year.
In addition, there is support from exports of computers and components following the recovery of the electronics cycle and exports of agricultural and food products that continue to expand. However, it is still necessary to monitor uncertainties from geopolitical issues that may be trade barriers in the future.
Total trade value
Trade value in US dollars
January 2024, exports were valued at 22,649.9 million US dollars, expanding by 10% compared to the same month of the previous year. Imports were valued at 25,407.8 million US dollars, expanding by 2.6%. Trade balance
Deficit of 2,757.9 million US dollars
Trade value in baht
January 2024, exports were worth 784,580 million baht, expanding by 10.2% compared to the same month of the previous year. Imports were worth 890,687 million baht, expanding by 2.%. The trade balance was in deficit of 106,107 million baht.
Export trends in 2024
The Thai export sector continues to receive positive factors from the recovery of trading partners’ economies following the slowdown in global inflation, the benefits of food security measures by many countries, and strong regional economic cooperation, while the geopolitical conflicts in the Middle East have not had a direct impact on Thailand.
However, the transportation obstacles caused by such conflicts indirectly result in higher freight rates and may expose trading partners’ economies to the risk of future inflation, while exchange rates may still fluctuate due to the direction of the US monetary policy adjustment. The Ministry of Commerce has been monitoring important issues that may affect exports in order to achieve the goal of driving the growth of Thai export value in 2024 at 1-2%.
However, it is a situation that is consistent with the growth rate of export value of many countries in January 2024, which is starting to look brighter, but some countries are still in the red, such as Vietnam +42%, Taiwan +18.1%, South Korea +18%, Singapore +15.7%, Thailand +10%, India +3.1%, Malaysia +0.2%, Japan -0.2%, Indonesia -8.1%.
This reflects that the momentum of international trade, especially exports, has begun to improve and has returned despite problems, particularly the Red Sea, which has affected shipping costs.
For the expanding markets in January 2024, the Top 5 are:
Hong Kong +72% CIS +64.6% Australia +27.2% ASEAN (S) +18.1% CLMV +16.6%
Ministry of Commerce’s Export Promotion and Future Export Trends
In promoting exports, the Ministry of Commerce has important operations, including:
1. Discussions with the United States to reduce export barriers by requesting consideration of expediting the extension of the Generalized System of Preferences (GSP) that expired at the end of 2020, including requesting support for Thailand to be removed from all Watch Lists (WLs), emphasizing the importance of supply chain development and economic partnership with the United States, especially as a production base in modern industrial supply chains such as digital, AI, electronics, semiconductors, electric vehicles, clean energy, aviation, medicine and medical supplies, etc.
2. Increasing opportunities for Thai exports in the US and Indian markets. Executives from the Ministry of Commerce and export entrepreneurs traveled to Los Angeles, USA, to accelerate the promotion of Thai product imports into the US, as well as to build networks of partners and cooperation in trade and investment, seeking new importers in the US market, along with the signing of MOUs on jasmine rice and canned food products between Thai exporters and US importers.
In addition, a group of Thai entrepreneurs was led to participate in the 10th Vibrant Gujarat Global Summit in Gujarat, India, which is a good opportunity for Thai investors to further invest in Gujarat.
In addition, there is a push to accelerate the construction project of the Thai-Chinese high-speed rail. Mr. Nirut Maneephan, Governor of the State Railway of Thailand (SRT), revealed that the SRT is currently accelerating the construction project of the Thai-Chinese high-speed rail, Phase 1, Bangkok-Nakhon Ratchasima section, a distance of 250.77 km, with an investment budget of 179,412.21 million baht, divided into the cost of the work.
Civil Engineering 14 contracts, currently 1 contract has been completed, 11 contracts are under construction, and the remaining 2 contracts have not yet been signed in order to solve the problem of delayed transportation and increase opportunities for Thai exports.
Source: Tharath monet / infoquest
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