Commerce Ministry: Trade Deficit Hits Record High Due to Oil Prices and Surge in Raw Material Imports
Thailand's trade deficit hit a record 340 billion baht in April as imports surged 45% due to rising oil costs and increased raw material purchases for manufacturing, despite exports growing 23%.
The Commerce Ministry reported April exports grew 23% while imports surged 45%, mostly semi-finished raw materials for manufacturing and re-export, pushing Thailand's trade deficit to a historic record of 340 billion baht. Nanthapong Jiraleschpong, Director of the Office of Trade Policy and Strategy (OTPS) under the Commerce Ministry, revealed that April exports reached $31.583 billion, up 23.1% year-on-year, driven by 5.5% growth in agricultural and agro-industrial products and 27.5% growth in industrial goods. Strong export performers included electronics and circuit boards (up 19.4%), automobiles (up 9.4%), fresh and frozen fruits (up 74.3%), and processed chicken (up 6.1%), along with market recovery as importers accelerated purchases to hedge against price volatility and supply chain disruption concerns. Imports reached $41.604 billion, up 45%, resulting in a trade deficit of $10.021 billion or approximately 340 billion baht—a historic record—because Thailand is importing more semi-finished raw materials for production and export, while energy import costs have risen due to Middle East conflict impacts. For the first four months (January-April), exports totaled $127.752 billion, up 18.9% year-on-year, while imports reached $147.250 billion, up 35.7%, resulting in a trade deficit of $19.497 billion. Key export markets showed continued expansion: the United States (up 44.2%), the EU (up 19.2%), China (up 21.9%), Japan (up 23.4%), the Middle East (up 19.3%), ASEAN (up 34.3%), and South Asia (up 9.2%). However, the OTPS maintained Thailand's 2024 export target in the range of -3% to 8%, valued at approximately $329.446-366.805 billion, with a midpoint of 3% or an average annual export value of $349.824 billion. For the remaining eight months, average monthly exports must reach $27.758 billion to meet this target.
