Israel-Iran Conflict Could Impact Thai Economy

[webfact]

File photo for reference only

 

The Israeli-Iranian conflict poses a significant risk to the Thai economy up to the second quarter. This comes amidst concerns of currency depreciation and increasing oil prices, potentially reducing purchasing power. The IMF recently lowered its Thai GDP forecast from 4.4% to 2.7%, citing a decrease in domestic consumption.

 

Asian stock markets have already felt some impact due to the conflict, seeing increases in energy costs and gold prices, which reached an all-time high of 42,000 baht per baht-weight. But with Iran downplaying Israel’s drone strike, gold prices have normalized.

 

Geopolitical tensions have caused Thailand's Stock Exchange (SET) index to fluctuate, with a dip to 1,332 points, its lowest in over three years. The increase in oil prices could mean persistent inflation, which may affect the Federal Reserve's rate cut decisions, potentially impacting the SET index.

 

Thailand's national oil and gas conglomerate, PTT Plc, assured that the country has enough oil to meet demand despite global supply concerns. Thailand's currency, the baht, has experienced volatility against the US dollar, depreciating more than its regional counterparts due to external factors.

 

Thai National Shippers’ Council Chairman, Chaichan Chareonsuk, declared that exports could be marginally impacted as there is minimal trade between Thailand and Iran. Yet, increasing tension could pose severe threats to Thai exports.

 

Meanwhile, Israel's El Al Airlines maintains daily flights between Tel Aviv, Bangkok, and Phuket despite the conflict, reflecting continued strong demand. On the other hand, jet fuel prices have not seen any drastic increases due to the Middle East unrest, though airlines are feeling the pinch of the weak baht, as most expenses are dollar-denominated.
 

-- 2024-04-29

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[ezzra]

Any and every reason to use any excuse to hike prices up even when the threat is very minimal, what a crooked

world we living in...

[mania]

41 minutes ago, webfact said:

The Israeli-Iranian conflict poses a significant risk to the.....

World

[hotchilli]

2 hours ago, webfact said:

The Israeli-Iranian conflict poses a significant risk to the Thai economy up to the second quarter. This comes amidst concerns of currency depreciation and increasing oil prices, potentially reducing purchasing power. The IMF recently lowered its Thai GDP forecast from 4.4% to 2.7%, citing a decrease in domestic consumption.

Any excuse will do..... 

[nahkit]

9 hours ago, webfact said:

depreciating more than its regional counterparts due to external factors.

Would be nice if they actually cited what these external factors are that affect Thailand more than their regional counterparts.

Edited April 29 by nahkit