Thailand’s GDP growth may fall short of forecast this year due to Ukraine crisis
© Reuters. FILE PHOTO: Construction workers are seen in a building in Bangkok, Thailand March 8, 2017. REUTERS / Jorge Silva
BANGKOK (Reuters) – Thailand’s economy could grow less than 3.5 to 4.5 percent this year due to the impact of the Ukraine crisis on tourism, trade and consumption, the ministry said. The country’s finance minister said on Tuesday.
Arkhom Termpittayapaisith said at a news conference referring to Russia’s invasion of Ukraine: “There will be some impact … there is a chance that growth could come out of the way a little bit lower than forecast.”
The volume of foreign tourists to the Southeast Asian country may also fall short of the ministry’s forecast of 7 million this year, Arkhom said.
“High commodity prices due to rising energy prices have reduced domestic consumption,” he said.
The finance ministry, central bank and state planning agency are re-evaluating the impact of the conflict on the Thai economy, he added.
Arkhom said the government is considering measures to help reduce the cost of living of residents, including utility subsidies.
The Cabinet on Tuesday approved six-month excise tax cuts on diesel and fuel oil for power generation to help reduce the impact of high fuel prices, Arkhom said.
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