Thai exports surged by 8.7% in December 2024, totaling $24.8 billion, bolstered by robust growth in industrial and agricultural products, despite a sharp decline in mining and fuel exports.
December Exports Show Strong Growth
In December 2024, Thai exports surged by 8.7% year-on-year, extending a six-month growth streak. The total export value reached USD 24,765.9 million, surpassing forecasts from SCB EIC and the Reuters Poll. This consistent performance was bolstered by demand driven by concerns over U.S. trade protection measures and a notable rise in electronics and gold exports.
This robust export growth was further supported by strong demand from key trading partners, including China and the United States. Additionally, the weaker Thai baht played a role in enhancing the competitiveness of Thai products in global markets. Analysts suggest that this upward trend in exports could continue into early 2025, provided global economic conditions remain stable and trade policies remain favorable.
Key Contributors and Market Performance
Industrial products led the way with an 11.1% growth, with precious stones and machinery playing significant roles. Agricultural exports also thrived, rising by 10.7%. However, mining and fuels faced a sharp contraction of 32.0%. Notably, exports to major markets like the US, Europe, and China flourished, with double-digit increases, though electronics exports to Hong Kong saw a significant drop.
Industrial products maintained their momentum, driven by robust demand for machinery and precious stones. In contrast, the mining and fuels sector struggled, experiencing a steep decline that weighed on overall export performance. Agricultural goods, on the other hand, showed resilience, posting strong growth as global demand surged. Key markets such as the US, Europe, and China contributed significantly to the export boom, showcasing double-digit gains. However, the electronics sector faced challenges, particularly in Hong Kong, where exports recorded a noticeable downturn.
Outlook for 2025
Looking ahead, early 2025 forecasts indicate continued robust export growth, driven by proactive purchasing from trading partners amid impending U.S. trade policies. However, potential headwinds loom due to anticipated declines in global economic growth and rising trade barriers. SCB EIC projects Thai export growth at 2% for 2025, with updated forecasts expected soon. Additionally, sectors such as electronics, automotive parts, and agricultural products are likely to remain key contributors to export performance, supported by sustained demand in regional markets. On the other hand, exporters may face challenges from fluctuating currency exchange rates and stricter environmental regulations, which could impact production costs and competitiveness.
