Bangkok: Exports in March 2026 expanded by 18.7%, providing a stark contrast to the challenges posed by ongoing geopolitical tensions in the Middle East. The export value increased to US$35,157.1 million, surpassing analysts' expectations and marking a substantial jump from February's 9.9% growth. This growth was primarily driven by the electronics and electrical appliance sectors.

According to Thai News Agency, the Krungthai Compass Research Center reported that the industrial goods sector, especially electronics and electrical appliances, was the main contributor to the export surge, expanding by 13.3% year-on-year. The United States emerged as a significant market for these exports. Conversely, some markets, particularly in the Middle East, are hindered by geopolitical tensions. On the import side, March saw a total of US$38,496.6 million, a rise of 35.7% year-on-year, driven by electrical circuit boards, electrical machinery, and computers. A notable increase in fuel imports, reflecting a 24.2% month-on-month rise in crude oil prices, contributed to the trade deficit of US$3,339.5 million.

Krungthai COMPASS highlights that while exports showcased robust growth, the conflict in the Middle East has begun to impact Thailand's economy significantly through elevated import costs and diminished external demand. There is increased pressure on production costs in Thailand, with higher unit import prices of oil-sensitive commodities in March. This situation affects the energy, petrochemical, and chemical sectors, resulting in rising production costs for Thai businesses, particularly in the plastics and petrochemical industries.

Signs of slowing foreign demand have also emerged, as evidenced by the Federation of Thai Industries' declining foreign order and sales indices in March. The forward-looking index has decreased, indicating a clearer impact on some markets and products, particularly in the Middle East and the Persian Gulf. This has affected Thai exports of automobiles, air conditioners, and wood products. Additionally, some product groups face pressure from slowing Asian demand, aligning with the Bank of Thailand's BSI index and the manufacturing PMI for March in China and Japan. This weakening of foreign demand, especially from Asia, is expected to exert further pressure on Thai exports in the coming months.