Japan · Nation Thailand
Thailand subject to weak growth and debt while tensions re-escalate
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Thailand is still limited by economic slowdown and a weak balance sheet amid renewed tensions between the United States and Iran, a prominent economist warns.
Key facts
- While Thailand is growing in the roughly 2.5% range, other countries in the region would reach higher economic growth
- While the latest data show Thailand's GDP growth is projected by the Bank of Thailand to reach 2.3% this year, Malaysia is expected to expand by 6.5% and Vietnam by more than 8%.
- Pipat Luengnaruemitchai, Managing Director and Chief Economist at Kiatnakin Phatra Financial Group, said Thailand has benefited from stronger exports through electronic supply chains and growing artificial intelligence investment, but
- If there is no further escalation in the Middle East and another spike in oil prices, we expect inflation to peak at around 3% to 4%, rather than 4% to 5% as many had feared,"
Summary
Dr. Pipat Luengnaruemitchai, Managing Director and Chief Economist at Kiatnakin Phatra Financial Group, said Thailand has benefited from stronger exports through electronic supply chains and growing artificial intelligence investment, but economic growth remains comparatively weak compared with regional peers.
“A lot of countries in Asia are actually benefiting from this theme. While Thailand is growing in the roughly 2.5% range, other countries in the region would reach higher economic growth. So I think this is a good moment for the region, particularly for those benefiting from electronic supply chains and investment in AI capital expenditure,” he said.