According to former Minister of State for Finance and Public Administration, Kobsak Pootrakool, the global economy will continue to face various risks. These include the rising inflation rate, the conflict between Ukraine and Russia, and the property crisis in China.
He noted that a global economic slump is expected after China lowered its growth forecast. The country, which is the world’s second-largest economy, implemented pandemic lockdowns in several cities due to its Zero COVID policy.
In response to the worsening economic situation in China, the country’s central bank cut its key interest rate by 25 basis points to 4.45%. This was the biggest reduction since 2019. According to him, Thailand will also feel the effects of these developments as it relies heavily on Chinese tourists. He also noted that the country’s tourism industry will not be able to recover until China takes more time to address its internal issues.