Global trade tensions to hit Thailand's economic growth: central bank

BANGKOK, April 18 (Xinhua) -- Thailand's economic growth could take a significant hit from escalating global trade tensions, with U.S. tariff measures threatening to disrupt exports, investment, and financial stability, the Thai central bank said on Thursday.

Bank of Thailand Assistant Governor Sakkapop Panyanukul said the uncertainty surrounding global trade policies represents potentially "large and prolonged shocks," with signs of a slowdown in production, trade, and some areas of investment as businesses await clarity.

The shifting global trade landscape is expected to impact the Thai economy through multiple channels, and those effects on exports are expected to become more noticeable in the second half of the year, Sakkapop told a news briefing.

Sakkapop noted that the central bank's previous gross domestic product growth forecast of around 2.5 percent for 2025 would likely be revised downward.

The current shock is more sector-specific compared to the broad-based impact of the COVID-19 pandemic, he added.

To address the fallout, the central bank emphasized the importance of diversifying export markets, strengthening regional supply chains, and reducing domestic business costs.

It also highlighted the critical need for broader structural reforms and the implementation of short-term measures to combat unfair trade practices.■