Thai Trade Deficit Widens as Imports Surge, Baht Strengthens

Trade Deficit and Economic Impact - Thailand experienced a trade deficit of $2.73 billion, surpassing the forecast of $1.36 billion, marking the largest gap since January 2023 [1][3] - Exports grew by only 7.1%, falling short of estimates, while imports surged by 17.6%, exceeding expectations [2][3] Currency Strength and Competitiveness - A sustained trade deficit poses risks to Thailand's economic growth, as a stronger baht diminishes export competitiveness [3] - The baht reached its strongest level against the US dollar in over four years, attributed to a rally in gold prices, raising concerns among authorities [6][7] Export Performance - Thai shipments to the US, the largest export market, increased by 38% year-on-year to $6.47 billion, driven by demand for electronic products and parts [4] - Shipments of electronic products surged by 157% from the previous year, totaling $5.24 billion [4] Government Actions and Trade Relations - Prime Minister Anutin Charnvirakul is working to enhance trade terms with the US while managing diplomatic relations, particularly regarding a peace deal with Cambodia [5] - The government is cautious about the strong baht's impact on key exports, especially in the agricultural sector [7]