Thailand’s exports rose for a second straight month in August, the commerce ministry said on Wednesday as it maintained its forecast of 1% to 2% growth this year despite the baht strengthening to 30-month highs against the U.S. dollar.
With demand picking up in key markets, further export growth was expected this year and it could even come in above forecast, although the baht’s rise would impact Q4 shipments, said Poonpong Naiyanapakorn, head of the ministry’s Trade Policy and Strategy Office.
Exports, a key driver of Southeast Asia’s second-largest economy, rose 7% in August from a year earlier, and followed July’s 15.2% rise, which was the fastest growth in 28 months. Economists in a Reuters poll had expected a rise of 5.8%
Imports rose 8.9% in August from a year earlier, compared with a forecast rise of 7.30% in the poll.
That led to a trade surplus of $0.26 billion in August, compared with a forecast deficit of $0.07 billion.
In the first 8 months of 2024, exports rose 4.2% from a year earlier, while imports rose 5.2%, with the cumulative trade deficit at $6.35 billion.
The baht has risen 4.6% since the beginning of the year, with large gains seen in the past month, to be the region’s second-strongest performing currency after Malaysia’s ringgit.
“The stronger baht is impacting liquidity and profits, especially for agricultural goods,” said Chaichan Chareonsuk, chairman of the Thai National Shippers’ Council.
“Some business could take a loss when negotiating new orders or not get orders,” he said.
The Finance Ministry and central bank are due to meet next week to discuss currency appreciation and inflation target.
The Bank of Thailand said it was closely monitoring the currency and was ready to reduce volatility.
For August, shipments to the United States rose 3% from a year earlier, while exports to China was up 6.7% but those to Japan were down 11.3%.
Last month, rice exports rose 39.5% from a year earlier to 885,387 metric tons, and were up 46.6% in value terms to $562 million.
