Thailand Cuts Growth Outlook as War Hits Tourism and Prices
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Bangkok: Thailand has lowered its economic growth forecast and expects fewer tourists this year as the ongoing Middle East conflict pushes up global energy prices.
The government now projects growth at around 1.6%, down from 2.4% last year, reflecting weaker economic momentum. Tourism, a key driver of the economy, is also expected to slow, with arrivals estimated at about 33.5 million — roughly two million fewer than earlier forecasts.
Officials say higher fuel costs and uncertainty caused by the conflict have reduced travel demand, especially from Europe and the Middle East. Tourist numbers from the Middle East dropped sharply, while European arrivals also declined.
At the same time, inflation is expected to rise significantly, mainly due to higher energy prices. This combination of slower growth and rising costs is putting pressure on the country’s recovery.
Overall, the outlook highlights how global conflicts are affecting economies far beyond the region, with Thailand’s tourism-dependent economy particularly vulnerable.
Pic Credit: AFP
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