Bangkok: Thailand's exports in January hit a record high, soaring over 980 billion baht, marking the highest growth rate in four years. This unprecedented increase was primarily fueled by a surge in the electronics sector, as revealed by the Ministry of Commerce.
According to Thai News Agency, the Director of the Office of Trade Policy and Strategy, Mr. Nantapong Chiraleartpong, announced that January exports amounted to US$31,573.1 million, or over 980.744 billion baht, representing a 24.4% increase and marking the 19th consecutive month of growth. When excluding oil-related products, gold, and military equipment, the export growth rate still stood at a significant 20.9%. The electronics sector, particularly computers, equipment, and components, saw an expansion of 68.2%, while telephones and related equipment grew by over 195%, reflecting a global demand for technology products driven by investments in AI and digital infrastructure.
Despite the robust export performance, Thailand's trade balance remained in deficit with imports totaling US$34,876.5 million, a 29.4% increase, which resulted in a trade deficit of US$3,303.4 million, equivalent to over 116.7 billion baht.
In the agricultural sector, the overall picture contracted by 1.8%, but there was notable growth in certain products. Fresh and processed fruits expanded by over 53%, fresh and frozen shrimp grew by 40%, and pet food marked its fifth consecutive month of expansion. Conversely, products like rubber, rice, and sugar continued to contract.
The export markets showed expansion across almost all regions, with the United States growing by 43.1%, China by 35.1%, the European Union by 17.8%, and ASEAN by 29.8%, indicating a recovery in demand across key markets.
Looking ahead, the Ministry of Commerce projects continued export growth through 2026, driven by global digital technology investments and new free trade agreements. However, there are concerns about Thai baht exchange rate volatility and geopolitical uncertainties, which need careful monitoring.
Mr. Nanthapong noted that the over 24% growth in January exports was largely driven by genuine demand from the technology sector and AI investments, with electronics, jewelry, and certain agricultural products leading the surge. While the government is cautious about the sustainability of this growth, the full-year export forecast is yet to be adjusted, pending first quarter assessments.
A significant focus is on US tariff measures, with recent policy changes potentially affecting trade dynamics. President Trump's decision to initially reduce tariffs on some goods and subsequently raise them could impact import decisions and necessitates further discussion.
The trade relationship between Thailand and the United States remains a critical issue, with ongoing negotiations to address trade deficits and potential impacts of Section 301 tariffs. Businesses are advised to monitor fluctuations in the Thai baht exchange rate and tax measure uncertainties, especially those affecting electrical goods and certain food items.
To mitigate risks, the Ministry of Commerce is expanding into new markets, organizing business matching events, and targeting high-potential regions such as China, India, Vietnam, Saudi Arabia, Africa, and Latin America.