[THAILAND ECONOMIC NEWS] Good morning everyone I am Rumi Dhar from Kama Group.
Here I have important THAILAND economic news to share with you which is as mentioned
under.

The Russia-Ukraine conflict is estimated to inflict 244.70 billion baht's worth of damage to the
Thai economy, dragging GDP growth to only 2-3% this year, if it is extended for the entire year,
according to the latest study by the University of the Thai Chamber of Commerce (UTCC).

"The Thai economy is highly likely to grow at a rate of 2-3%, with inflation staying at 5% this
year if the Russia-Ukraine conflict is prolonged throughout this year," said Thanavath
Phonvichai, president of the UTCC. "This scenario will lead Thailand to enter technical
stagflation in 2022."

Stagflation is a combination of stagnation and inflation. It describes an economic condition
characterised by slow growth and high unemployment (economic stagnation) mixed with
rising prices (inflation).

Stagflation is mostly associated with the 1970s, during which many developed economies
experienced rapid inflation and high unemployment as a result of the oil crisis.

Mr Thanavath insisted this estimated impact is the outcome only of the Russia-Ukraine conflict,
excluding other headwinds such as the rapid spread of the Omicron variant of Covid.

"Nevertheless, it's too early to make such a dreadful scenario, as the situation is still full of
high uncertainties," he said. "The university is still maintaining the Thai economic growth
forecast at the rate it made in November last year, but will wait some time before making a
new revision possibly in April."

According to Mr Thanavath, the impact of the Russia-Ukraine conflict on the global economy
is expected to persist for 1-3 years and it remains difficult to predict the situation.




Read more at: https://www.bangkokpost.com/business/2276679/conflict-will-cost-thailand-b245bn

KAMA GROUP
New Delhi
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