Pornchai Thiraveja, Director-General of the Fiscal Policy Office (FPO), has stated that the Thai Ministry of Finance is diligently monitoring the economic implications of the ongoing conflict between Israel and Iran.
He assessed that the situation has only a limited impact on the Thai economy since the conflict is localized, and there are promising signs that resolutions might soon alleviate the tensions.
The Thai and global financial markets have shown volatility due to uncertainties caused by the conflict. Following the long Songkran holiday period, the US dollar strengthened, and global stock indices, including Thailand’s, saw declines.
Pornchai also highlighted that commodity prices, such as crude oil and gold, initially spiked due to the conflict. However, there has been a subsequent easing, leading to a decrease in crude oil prices, with no significant increases anticipated unless the situation escalates further.
Regarding Thailand’s international trade and tourism, the impact is minimal. The trade volumes and tourist numbers from the involved countries are not substantial, and investment from these countries in Thailand is also limited.
Consequently, the FPO has concluded that the conflict does not significantly affect Thailand’s economy. (NNT)
