Thailand’s Finance Ministry warns that the US government shutdown could affect the Thai economy through currency volatility, export delays, and tourism slowdown. The shutdown, triggered by failed budget negotiations, has already impacted US federal employees and agencies, causing delays in economic data and potential weak consumer spending.
If prolonged, it could lead to increased baht fluctuations, pressure on the stock market, and reduced demand for Thai exports, especially electronics and industrial goods. Tourism may also decline as US travelers become cautious, and investment confidence in emerging markets like Thailand could wane.
To mitigate these risks, Thailand’s authorities recommend foreign exchange intervention, diversifying export markets, and supporting SMEs with low-interest loans and hedging options. The situation remains uncertain, but early signs suggest careful preparation is essential to shield the economy from fallout.