Israel-Iran conflict threatens Thai economy in Q2

The ongoing conflict between Israel and Iran poses a potential threat to the Thai economy in the second quarter. Anticipated challenges include currency depreciation, an increase in oil prices, and a decrease in purchasing power.

This comes after the International Monetary Fund reduced its Thai GDP forecast significantly from 4.4% to 2.7% growth, due to a slump in domestic consumption.

Earlier this month, the conflict affected Asian stock markets and gold prices. Furthermore, an increase in energy prices could lead to a rise in living costs and dampen economic prospects.

Gold prices surged over US$2,400 an ounce due to fears of a wider conflict between Israel and Iran. Investors sought security in the precious metal, causing domestic gold to reach a record high of 42,000 baht per baht-weight. However, after Tehran downplayed the significance of Israel’s retaliatory drone strike,…