Thailand’s planning agency warns of global threats to economy in 2025
Thailand’s public and private sectors should monitor geopolitical conflicts closely amid the potential for serious economic impacts this year, the National Economic and Social Development Council (NESDC) warned on Wednesday.
Danucha Pichayanan, NESDC secretary-general, cited the Middle East conflict after Syria’s Bashar al-Assad was ousted by rebel forces in December.
He anticipates internal restructuring in Syria will lead to efforts towards peace with Israel, potentially easing the conflict and smoothing volatility in the global fuel market.
However, he noted the conflict could also ignite and send fuel prices soaring, especially if the Strait of Hormuz oil transport route is closed.
Danucha said simmering tensions between China and Taiwan would also affect global trade. The tensions threaten Taiwan’s status as the world's largest chipmaker, risking knock-on impacts on the manufacturing of electronic products and cars, he said.
He also predicted that the Russia-Ukraine conflict could ease after US President-elect Donald Trump takes office later this month. However, the focus is now on whether incumbent President Joe Biden will authorise large weapon shipments to Ukraine before his tenure ends, he said.
This would prolong the war and affect the Thai and global economies in the year ahead, he warned.
