Agricultural products, June exports down 0.3%, first half of the year still growing 2% as targeted

Mr. Poonpong Naiyanapakorn, Director of the Office of Trade Policy and Strategy (OTPS), announced the international trade situation of Thailand in June and the first 6 months of 2024 that Thai exports in June 2024 were worth 24,796.6 million US dollars, contracting by 0.3 percent due to fruit products entering the end of the season, resulting in less products entering the market. Thailand’s trade balance has been in surplus for 2 consecutive months, while the global trade atmosphere has begun to show concerns about the trend of trade barriers and the uncertainty of election results in many countries.

In addition, technological changes, such as the transition to electric vehicles, have also led to a clear contraction in the demand for combustion engines. Thai exports in the first half of 2024 expanded by 2.0 percent. While Thai exports in the first 6 months of 2024 were worth 145,290.0 million US dollars, expanding by 2.0 percent, the value of agricultural and agricultural product exports contracted by 3.3 percent, returning to contraction in 3 months, with agricultural products contracting by 2.2 percent, returning to contraction after expanding in the previous month, and agricultural industrial products

Contraction of 4.8 percent, the first contraction in 3 months Fresh, chilled, frozen and dried fruits contracted by 37.8 percent, reversing their contraction after expanding in the previous month. Sugar contracted by 51.9 percent, continuing to contract for 6 months. Fresh, chilled and frozen chicken contracted by 13.4 percent, continuing to contract for 2 months. For industrial product exports, they expanded by 0.3 percent, expanding continuously for 3 months.

With important products that expanded, such as automobiles, equipment and components, expanding by 13.5 percent, expanding again after contracting in the previous month. Export trends in 2024: The Ministry of Commerce expects that Thai exports will expand as targeted. With positive factors from agricultural and food exports and the growth of the digital economy supporting demand for related products.

While there are risk factors from the drought situation that results in a decrease in agricultural products released to the market, geopolitical conflicts that continue, civil wars in many countries, the problem of shipping rates that will increase in the second half of the year, the economies of some trading partners recovering rather slowly, including elections in many countries creating uncertainty causing investors to delay investment to wait for the new government’s policy stance.