NESDC Warns Rising Oil Prices Could Slow Thailand’s Economic Growth This Year

The Russia-Ukraine war could jeopardize Thailand’s economic recovery and cause GDP growth to slow down this year, said the Office of the National Economic and Social Development Council (NESDC) on Thursday.

The agency analyzed the effect of the Russian-Ukrainian conflict on the Thai economy in two major ways: (1) on inflation; if Dubai crude oil prices climb by an average of $100 per barrel, Thailand’s inflation rate in 2022 is predicted to reach 5%; and (2) on the tourism sector; due to the decline in the number of Russian and European tourists, one of those main countries with tourists visiting Thailand.

The impact of both rising energy prices and tourism is projected to lead Thailand’s economy to expand at a slower rate than previously anticipated, but NESDC believes the GDP growth could still be able to increase by at least 3 percent.