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Thai Export Recovery Slows as Trade Deficit Persists
The value of Thai exports in February 2024 only increased by 3.6% compared to the previous year, signaling a slowdown in the short-term recovery. This growth rate is significantly lower than the 10% growth seen in the prior month, with exports of agricultural and manufacturing products stalled. Additionally, exports to key destinations showed uneven growth, with robust expansions to the US and Switzerland, but contractions to China, Japan, and the Middle East. Import values increased, mainly from China and Europe, leading to a trade deficit. SCB EIC forecasts a 3.1% export growth for 2024, lower than previous estimates, citing challenges in adapting to changing global demand patterns. Despite recovery in global manufacturing conditions, exports may contract in March 2024, with exports of weaponry for overseas military drills potentially mitigating the decline. The forecast for export growth in 2024 has been revised down to 3.1% due to external factors affecting global trade.
