A new economic crisis could hit Thailand, warns a former minister

Kobsak said multiple risks, including rising inflation, armed conflict between Russia and Ukraine, and real estate crisis in China and Thailand, will inevitably feel the effects of these crises.

Kobsak Pootrakool, a former minister attached to the Prime Minister’s Office, hinted that the global economic situation is likely to continue to face multiple risks.

He said these included rising inflation, the armed conflict between Russia and Ukraine and the real estate crisis in China.

The former minister also said a global economic recession was on the cards after China lowered its GDP growth forecast from 8% to 6%. The world’s second-largest economy recently imposed pandemic lockdowns on several of its major cities as part of the nation’s Zero COVID policy, which has impacted the manufacturing sector.

China’s central bank also announced an interest rate cut for 5-year loans to 4.45%, the biggest drop since 2019.

Kobsak said Thailand will inevitably feel the effects of these crises, as the kingdom relies heavily on exports to China.

He added that Thailand cannot rely on Chinese tourists to revive the local tourism scene, as he expects China will need more time to focus on solving its internal problems. (NNT)

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