The recent flare-up of conflict along the Thai-Cambodian border is expected to have only a marginal direct impact on Thailand’s overall Gross Domestic Product, according to an analysis by Pipat Luengnaruemitchai, an economist at Kiatnakin Phatra Securities.

While the direct economic effect is considered small, Pipat highlighted that the main concerns lie in disruptions to trade flows and the potential cumulative damage to the vital tourism sector.

During a press briefing on Monday, the economist emphasised that trade disruption is the most immediate economic channel affected by the border tensions.

Thai exports to Cambodia account for approximately two to three per cent of Thailand’s total exports, with around seventy per cent of that value representing border trade.

Crucially, he suggested that because the border crossing had already experienced closures previously, the most recent fighting may not significantly worsen existing trade-volume disruption.

Nevertheless, the broader economic consequences could arise from reduced tourism, interruptions to border-dependent commerce, and deepening political uncertainty, which together may erode business sentiment and dampen investment in affected regions.