Thailand’s trade deficit hits record US$10 billion as imports soar
Exports, meanwhile, are up 23.1%, slightly above the median forecast
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[BANGKOK] Higher imports of capital goods and raw materials, along with soaring oil and gas prices, pushed Thailand’s trade deficit to its widest level on record dating back to 1991.
Imports surged 45 per cent in April from a year earlier, Commerce Ministry data showed Monday (May 25), far exceeding even the highest estimate in a Bloomberg survey of economists.
Exports rose 23.1 per cent, slightly above the median forecast.
As imports outpaced exports for a seventh straight month, Thailand’s trade deficit widened to US$10 billion in April, compared with a median estimate of US$5.3 billion.
Nantapong Chiralerspong, director-general of the Trade Policy and Strategy Office, said that the trend of strong imports and a widening trade deficit is likely to continue if energy prices remain elevated and the artificial intelligence boom continues to fuel trade flows, putting further pressure on the baht.
The office forecasts export growth this year in a range of minus 3 per cent to plus 8 per cent, with a base-case estimate of 3 per cent.
The wide range reflects uncertainty over global energy prices and the trajectory of AI-related demand, Nantapong said. BLOOMBERG
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