Thai exports surge most in 4 years on AI, China demand

Thailand's exports surged to their fastest pace in over four years, driven by electronics and Chinese demand for Thai fruits, according to commerce ministry data released on Friday. Outbound shipments rose 24.3% in August compared to the same time last year, marking the strongest growth in 56 months. Imports increased 25.1%, down from a 36.7% rise in July. The trade deficit narrowed to US$2.5 billion from US$3.6 billion in July.

Outbound shipments were largely propelled by electronics, which accounted for nearly a third of total exports. Global technology companies are increasing spending on AI infrastructure, expected to keep boosting electronics exports in the coming months. Chinese demand for Thai durians and mangosteens also contributed to the export surge.

However, the export boom may face challenges. Analysts predict that demand for Thai goods could decline next year due to high oil prices, excess inventories, and earlier front-loading of orders. US tariffs, which affect about 60% of Thailand's shipments to the country, also pose a risk. Although exports to the US grew by 48.7% in August, the 35th consecutive monthly increase, Thailand is seeking treatment similar to Indonesia and Malaysia, which benefit from a lower 10% US tariff.