Analyzing Opportunities and Challenges for Thailand under Trump's Policies
Donald Trump's election victory brings a complex scenario for Thailand's economy, presenting both opportunities and challenges.
According to Pornchai Thiraveja, director-general of the Fiscal Policy Office, Trump's approach may benefit Thailand's high-tech investment landscape but also introduce economic pressures.
Thai exports to the US might suffer due to protectionist policies, pushing Thailand to diversify its markets.
The US's stringent trade measures against China could slow Beijing's economy, decreasing Chinese tourist numbers and Thai exports there.
Furthermore, Trump's policies could deter US foreign direct investment in Thailand by promoting domestic production in America.
As the Federal Reserve may maintain or raise interest rates to curb potential inflation, it could lead to a weaker baht and capital outflows towards US bonds.
Thailand's inflation may rise with increasing US commodity prices.
Stock market volatility is anticipated globally, including in Thailand.
However, should clear and effective US policies emerge, they could boost investor confidence and positively impact Thailand's market.
Despite risks, Thailand might seize opportunities in high-tech industries and increased US demand for its agricultural exports if American tariffs on Chinese goods persist.