SCB EIC sees little impact of Israeli-Palestinian war on the Thai economy

According to SCB EIC’s analysis, the current Israeli-Palestinian conflict is not expected to have a significant impact on the Thai economy in terms of tourism and merchandise exports.

Key Takeaways

• The global economy is experiencing a slowdown, led by a contraction in the service sector and a slower expansion in the manufacturing sector, with the US economy showing clear signs of slowing down in the fourth quarter.
• The global inflation rate is expected to accelerate in the coming years, with central banks in the US, Europe, and the UK keeping interest rates high until mid-2024 before gradually reducing them in the latter half of the year.
• Thailand’s economy is expected to recover through private consumption and the service sector, driven by an increase in international tourists from ASEAN, East Asia, and Europe, as well as a resurgence in Thai domestic tourism, while exports…