BANGKOK, Thailand – Bank of Thailand Governor Sethaput Suthiwartnarueput has raised concerns over Thailand’s economic outlook, citing growing global uncertainty from U.S. tariff policies, particularly under a potential Trump administration. Speaking at the “Meet the Press” event, he described the situation as a looming economic storm, likely to trigger a slowdown that could deepen into a prolonged downturn.
While the immediate impact on Thailand remains limited, early signs include a rush by trade partners to import goods and investment delays due to uncertainty. He anticipates clearer effects in the second half of 2025, with a sharp slowdown expected in Q3 and bottoming out in Q4, creating a wide V-shaped recovery pattern.
Despite the risks, Sethaput believes the current economic “shock” is less severe than previous crises such as the 1997 Tom Yum Goong crisis, the 2008 global financial meltdown, or the pandemic. However, he stressed that effective, targeted policy measures are crucial to cushion the impact and enable faster recovery. Blanket fiscal responses would be less effective given sector-specific vulnerabilities.
He also addressed the strengthening of the baht, attributing it to a weakening U.S. dollar and a surge in safe-haven investments in gold—whose prices closely track the baht. The central bank pledged to allow the market to function freely but would step in if volatility becomes excessive or speculative.
On fiscal matters, the governor emphasized the need for prudent spending, warning against unnecessary stimulus programs. He maintained the Bank of Thailand’s previous concerns over the government’s digital wallet project, urging a reassessment in light of changing conditions and the influx of foreign goods.
