Global Economic Recovery Drives Thai Exports to an 18-Month High, Surpassing 784 Billion Baht
March, 6 2024
Keerati Rushchano, Permanent Secretary of the Ministry of Commerce, reported that Thailand’s exports in January 2024 reached $22.65 billion (784.58 billion THB), reflecting a 10% year-on-year (YoY) growth, the highest increase in 18 months. This marks the sixth consecutive month of expansion, signaling a strong recovery for Thailand’s export sector.
When excluding oil-related products, gold, and military supplies, exports still recorded a 9.2% increase, demonstrating sustained momentum despite global trade uncertainties.
Factors Driving Export Growth
Thailand’s export growth aligns with a broader recovery across Asia, supported by:
- Easing global inflation, allowing trade to rebound
- Low base values from the previous year, amplifying YoY growth
- Strong demand for computers and electronic components, reflecting the resurgence of the electronics cycle
- Sustained expansion of agricultural and food exports
However, uncertainties remain due to ongoing geopolitical conflicts, which could pose future trade disruptions.
Total Trade Value in January 2024
In U.S. Dollars
- Exports: $22.65 billion (+10% YoY)
- Imports: $25.41 billion (+2.6% YoY)
- Trade Deficit: $2.76 billion
In Thai Baht
- Exports: 784.58 billion THB (+10.2% YoY)
- Imports: 890.69 billion THB (+2.0% YoY)
- Trade Deficit: 106.11 billion THB
2024 Export Outlook
Thailand’s exports are expected to benefit from improving global economic conditions, including:
- Stronger demand from trade partners as inflation slows
- Increased food security measures across many countries
- Stronger regional economic cooperation
Although Middle East conflicts have not yet directly impacted Thailand, logistics disruptions have led to higher freight costs, potentially increasing global inflation risks and affecting Thailand’s key trade partners. Additionally, currency exchange rates remain volatile, influenced by U.S. monetary policy changes.
Comparing Export Growth in January 2024
| Country | Export Growth (%) |
|---|---|
| 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 suggests that global trade is rebounding despite logistical challenges, especially due to the Red Sea crisis, which has increased shipping costs.
Top 5 Markets with Highest Growth in January 2024
- Hong Kong (+72%)
- CIS (Commonwealth of Independent States) (+64.6%)
- Australia (+27.2%)
- ASEAN (South) (+18.1%)
- CLMV (Cambodia, Laos, Myanmar, Vietnam) (+16.6%)
Ministry of Commerce’s Export Promotion Strategies
To sustain export growth, the Ministry of Commerce is implementing key strategies:
1. Trade Negotiations with the U.S.
- Requesting an extension of GSP (Generalized System of Preferences), which expired in late 2023
- Advocating for Thailand’s removal from the U.S. Watch List (WL)
- Strengthening supply chain partnerships, particularly in:
- Digital & AI
- Electronics & Semiconductors
- Electric Vehicles (EVs)
- Clean Energy
- Aerospace
- Pharmaceuticals
2. Expanding Trade Opportunities in the U.S. & India
- Commerce executives and exporters visited Los Angeles to strengthen trade partnerships, find new buyers, and sign MOUs for Thai Jasmine rice and canned food exports
- Participated in the 10th Vibrant Gujarat Global Summit in India, facilitating investment opportunities in Gujarat, a key industrial hub
Infrastructure Development: High-Speed Rail to Boost Exports
To accelerate export logistics, Thailand and China are fast-tracking the Bangkok-Nakhon Ratchasima High-Speed Rail Project (Phase 1).
Project Overview
- Distance: 250.77 km
- Investment: 179.41 billion THB
- Construction Progress:
- 1 contract completed
- 11 contracts under construction
- 2 contracts pending finalization
Once completed, this project will significantly enhance Thailand’s transportation efficiency, reducing shipping delays and supporting further export growth.
Conclusion
Thailand’s export sector has shown remarkable resilience, posting strong growth in early 2024. While global trade faces geopolitical and economic challenges, Thailand’s strategic policies, infrastructure investments, and regional partnerships will play a crucial role in sustaining export momentum throughout the year.