BANGKOK (March 26): Thailand's exports rose year-on-year for the seventh straight month in February, but at a much slower pace, missing analysts' forecasts, as shipments to China and Japan contracted.

Customs-based exports rose 3.6% from a year earlier, commerce ministry showed on Tuesday, below a Reuters poll forecast for an increase of 4.4% on the year, and followed January's rise of 10% annually.

February exports rose 3.25% from the previous month.

Exports, a key driver of Thailand's economy, should be in a positive direction over the next few months, ministry official Keerati Rushchano told a news briefing.

But there is a "little challenge" for March exports due to a high comparative base last year, he added.

The ministry is keeping an export growth target of 1% to 2% this year, after a fall of 1% in shipments in 2023.

"Thailand's exports continued to grow steadily in response to the gradual economic recovery globally and the resurgence in consumer confidence," the ministry said in a statement.

"Despite minor impacts from the crisis in the Red Sea, exports to Europe and Saudi Arabia markets continued to expand."

It said uncertainties remained due to the slow recovery of the economies of major trading partners, such as China and Japan, drought, geopolitical risks, and volatile exchange rates.

In February, exports of industrial goods rose 5.2% from a year earlier, with computer shipments up 25% annually, while shipments of farm products climbed 7.5% on the year.

Rice exports increased 33.4% to 800,225 metric tons in February, with the value up about 54% on the year, the ministry said.

Thailand, the world's second-largest shipper of the grain, expects 2024 rice exports to fall about 14.4% to 7.5 million metric tonnes, hit by lower production and increased competition.

In February, shipments to US rose 15.5% while those to Japan dropped 5.8% and exports to China declined 5.7%.

February imports rose 3.2% from a year earlier, outstripping an increase of 1.5% expected in the poll, leading to a trade deficit of US$0.55 billion (RM2.6 billion) for the month.