Escalating inflation poses a significant risk to the Thai economy, especially if the US-Iran war drags on until the second half of the year, as domestic consumption remains fragile and small businesses in provincial markets face a liquidity crunch, say economists.
Amonthep Chawla, executive vice-president and head of research at CIMB Thai Bank, said despite significant growth in the first quarter, the Thai economy remains at risk for the rest of the year as energy prices are high while overseas bond yields have risen.
