Thai imports in April hit record high, increasing trade deficit

Thailand’s imports surged to an all-time high in April this year, widening the national trade deficit to a historic level, despite a robust 22-consecutive-month increase in exports, according to the Trade Policy and Strategy Office (TPSO) under the Ministry of Commerce.

The TPSO revealed on Monday that the import spike was primarily fuelled by the rising costs of fuel and aggressive purchasing of capital goods and raw materials.

According to Nantapong Chiralerspong, director general of the TPSO, April exports reached US$31.58 billion (approximately 1.02 trillion baht), representing a 23.1% year-on-year growth. When excluding oil, gold, and military supplies, export growth stood even higher at 25.7%.

The export surge was propelled by electronics, motor vehicles, electrical appliances, gems and jewellery.

Global buyers have reportedly accelerated orders to buffer against potential supply chain disruptions and anticipated cost increases.

Seasonal demand for Thai fruits, such as durian, rambutan and lychee, also remained exceptionally strong.

In terms of exports by market, almost all markets expanded in line with the growth of the manufacturing sector and consumption in each respective country, growing by 17%.

As a result, exports in the first 4 months of 2026 reached a value of US$127.75 billion, an expansion of 18.9%. Excluding oil-related products, gold and weapon systems, the expansion was 19.1%.

Imports in April eclipsed export gains, however, soaring by 45% month-on-month to hit a record-breaking US$41.60 billion.

This massive influx was concentrated in three sectors, which together accounted for 78% of total imports. They were raw materials and semi-finished products (up 38.7%), capital goods (up 32.8%) and fuel products (up 128.6%). Total imports for the first four months stood at $147.25 billion, a 35.7% increase.

As a result, Thailand recorded a monthly trade deficit of $10.02 billion in April, the highest ever recorded. This brought the cumulative trade deficit for the first four months of the year to $19.49 billion.

A significant portion of the deficit stems from trade with China. In April alone, Thailand posted a US$7.68 billion deficit with China, bringing the four-month total to US$29.20 billion, driven strongly by imports of electrical machinery, components and mechanical appliances.

Conversely, Thailand maintained a trade surplus with the United States, recording a US$4.64 billion surplus in April and US$21.51 billion for the first four months.

Despite the widening deficit, Nantapong downplayed immediate economic anxieties, saying "The high import volume in April shouldn't trigger undue alarm, as much of it comprises investments in capital goods and raw materials destined for future export production," adding that the figures were also skewed by elevated global fuel prices linked to ongoing tensions in the Middle East, alongside fluctuations in the Thai baht.

He also maintains an optimistic yet cautious outlook for the rest of 2026. Protracted geopolitical friction and rising maritime freight costs present ongoing challenges, alongside the risk of El Niño-induced droughts affecting agricultural yields in the latter half of the year. Temporary relief may come from US import tariff policies, which are set to remain in place until July.

The Ministry of Commerce is fast-tracking 5 core policies to handle overlapping crises, aiming systematically to restructure the Thai economy for the long term.

These include managing the cost of living, elevating the agricultural sector, strengthening SMEs, diversifying export markets, increasing the use of digital technology and unlocking trade regulations to boost the country's future competitiveness.

Nantapong stated that “The Ministry of Commerce estimates the full-year export growth target for 2026 to be between -3% and +8%, or a value of US$320–US$360 billion, with a highly probable median of +3% at approximately US$340 billion. This means that, over the remaining 8 months of 2026, exports must generate an additional US$220 billion, or average over US$27 billion per month.”

“The key factors for exports moving forward are the export cycles of electronic products, energy prices, agricultural and food products, as well as various activities that the ministry plans to push continuously in foreign markets," he said.