Thai Exports Surge 20.8% in June, Driven by Industrial Goods

Thailand's exports in June surged by 20.8% year-on-year to $34.7 billion, driven by robust demand for industrial goods such as electronics, smartphones, electrical appliances, and automobiles and auto parts, according to the Trade Policy and Strategy Office (TPSO). Exports of industrial products expanded by 25.1% in the month, marking the 27th consecutive month of growth. Conversely, exports of agricultural and agro-industrial products declined by 6.5%, although certain categories like rubber, sugar, canned and processed seafood, pet food, and processed chicken posted growth. Several major products saw declines, including fresh, chilled, frozen, and dried fruits; wheat products and other prepared food; canned and processed fruits; beverages; animal and vegetable oils and fats; fresh, chilled, and frozen chicken; and fresh, chilled, and frozen shrimp. Imports in June totalled $41.2 billion, a 50.3% increase, resulting in a trade deficit of $6.53 billion. Nantapong Chiralerspong, director-general of the TPSO, stated that gold was the key driver of imports, surging 192% and accounting for 7.2% of total imports. In the first half of this year, exports tallied $197 billion, up 17.6%. Imports amounted to $228 billion, a gain of 38%, resulting in a trade deficit of $31.7 billion. During this period, agricultural and agro-industrial product exports contracted by 3.2%, and shipments of industrial products expanded by 21.6%. Among major markets, exports to the US totalled $9.11 billion in June, up 44.3%, marking the 33rd consecutive month of growth. In the first six months, exports to the US tallied $47.1 billion, a gain of 41.1%. Exports to China totalled $3.89 billion in June, up 4.9%, and were valued at $22.7 billion in the first six months, an 8.1% growth. Mr Nantapong said the office's base-case July forecast calls for technology to remain the key driver of exports. Meanwhile, front-loading activity is expected to slow, while geopolitical conflicts are likely to persist without significant escalation. The new US tariff is seen as manageable, and the baht is expected to remain stable, noted TPSO. Based on these assumptions, the office forecasts Thai export growth of 8% this year, reaching roughly $367 billion.