Thailand sees weaker growth, higher inflation on Middle East crisis
Thailand's Finance Ministry has slashed its growth estimate for this year to 1.6% due to the Middle East conflict, which is expected to weaken economic growth and fuel inflation. Headline inflation is expected to average 3% this year, the top end of the central bank's target range.
Thailand's economy is expected to grow 1.6% this year, down from the 2% predicted in January, due to the impact of the Middle East conflict on oil prices. The Finance Ministry has raised its forecast for crude oil prices to $91 per barrel from $57.5. Headline inflation is expected to average 3% this year. The baht has weakened more than 4% since the start of the Iran war. The government is working on a cash handout to boost consumption and support the economy. Merchandise exports are expected to grow 6.2% this year, while imports may climb 13.9%.
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