Exports for the full year could still grow 8% year-on-year, after rising 10.6% to US$34.3 billion in May, according to the Trade Policy and Strategy Office (TPSO).
Nantapong Chiralerspong, director-general of the TPSO, attributed the 23rd consecutive month of export growth in May to strong demand for advanced technology products and global investment in artificial intelligence and data centre infrastructure.
Accelerated orders from importers, aimed at hedging against potential supply chain disruptions and uncertainties related to the trade policy of the United States, also contributed to the positive export performance.
In key categories, exports of agricultural and agro-industrial products declined by 7.2% year-on-year in May, marking the first contraction in three months.
Products that showed a decline included rubber, wheat products and other prepared food, animal and vegetable fats and oils, chilled and frozen chicken, and meat and edible meat offal.
However, exports of agricultural products such as durian and rambutan continued to grow due to the harvest season.
Exports of industrial products rose by 14.4%, marking the 26th consecutive month of growth. Robust growth was seen in computers, radio transmitters, phones and components, and electrical appliances.
In contrast, exports of automobiles and parts, air conditioning and components, and wood and wood products decreased.
Key export markets driving overall export expansion include the US, Japan, Asean-5 and the European Union.
In May, total imports grew by 35.1% to $40 billion, resulting in a trade deficit of $5.7 billion.
For the first five months, exports increased by 17% to $162 billion while imports grew by 35.6% to $187.3 billion, resulting in a trade deficit of $25.2 billion.
Exports are expected to continue expanding for the remainder of this year despite the modest pace of the global economic recovery.
However, Mr Nantapong said several headwinds persist, including geopolitical uncertainties such as the conflicts in the Middle East and US trade protectionist measures, both of which could increase costs for businesses and weigh on consumer purchasing power.
Meanwhile, exports continue to benefit from robust global demand for high-tech products. Easing tensions in the Middle East also help reduce pressure on international trade and logistics.
"Exports for the entire year could potentially expand by up to 8% if average monthly export values reach $29.2 billion for the remaining seven months of this year," said Mr Nantapong.
Addressing the high trade deficit, he said the Commerce Ministry has implemented measures such as exploring new export markets, increasing exports of high-value-added goods, and expediting trade negotiations with the US to secure mutually fair tariff rates.
