Thailand’s exports rose for a fifth straight month in December but at a slower pace and less than analysts’ forecasts, and the commerce ministry said on Friday (Jan 26) that it expected small export growth in 2024 after a slight drop last year.

Customs-based exports rose 4.7 per cent in December from a year earlier, compared with a forecast for a 6.0 per cent year-on-year increase in a Reuters poll, and following November’s 4.9 per cent rise.

December exports, a key driver of Thailand’s economy, dropped 2.9 per cent from the previous month.

“Geopolitical problems that affect global trade and pose risks to the global supply chain remain a significant factor that need monitoring as they could impact future exports,” the ministry said.

China’s economic slowdown will also have a big impact on Thai exports this year, Keerati Rushchano, the ministry’s permanent secretary, told a briefing.

China was Thailand’s second-largest export market in 2023 with a 12 per cent market share, after the United States’ 17.2 per cent share.

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As exports dropped 1 per cent last year, Keerati said the ministry’s 2024 working target for export growth of 1 per cent to 2 per cent “is challenging”.

In December, shipments of cars and car parts as well as electronics increased but exports of chemicals dropped.

Rice export volumes increased 4.1 per cent in December from a year earlier, with the value up 27 per cent. Rice shipments rose 13.7 per cent to 8.76 million metric tons in 2023.

Rice exports saw high demand due to concerns over food security, Keerati said.

In December, shipments to the United States rose 0.3 per cent from a year earlier and those to Japan dropped 3.7 per cent, while exports to China increased 2 per cent.

December imports fell 3.1 per cent year-on-year, creating a trade surplus of US$0.97 billion.

Full-year 2023 imports dropped 3.8 per cent annually, while the country’s trade deficit stood at US$5.2 billion. REUTERS