BOT:Thai economy faces positive, negative impacts from US-China trade war

BANGKOK, November 22 (TNA) - Impacts from the ongoing trade war between the United States and China should affect global economies, including the Thai economy, more clearly in early 2019 when the Thai Kingdom should face both positive and negative impacts from the tit-for-tat trade protectionist policy between the giant US and Chinese economies. Bank of Thailand (BOT) Governor Dr. Veerathai Santiprabhob voiced the assessment while delivering a speech at a public seminar on a revolution era of information and technology and a move forward by Thailand, organized by the Thammasat Economics Association (TEA) in Bangkok on Thursday. Dr. Veerathai said Chinese firms, particularly those producing steel and aluminum products, are expected to relocate their production bases to other economies where they can sell and export their products more easily to offset and avoid stiff import tariffs imposed by Washington. Dr. Veerathai pointed out that Thailand is a targeted area in which the Chinese firms may relocate their production bases, especially in the government-supported Eastern Economic Corridor (EEC) Project. However, the BOT governor cautioned the ongoing trade war between the immense US and Chinese economies should cause a slowdown in the global economies, including the Thai economy, in the coming months in terms of declining exports amid rising interest rates of such major trading partners as the United States, Japan and Europe and business costs, which needs a sound liquidity management to cope with the situation by business operators. The BOT governor acknowledged that Thailand's high level of foreign exchange reserves but low level of external debts have cushioned the national economy to remain strong. One day earlier, the state-run Krungthai Bank (KTB) also stated that the Thai economy remains strong, boosted by expanding public investment projects and industrial production plans, as well as growing Thai exports by 8.7 per cent year-on-year last month. KTB warned, nonetheless, that the Thai economy should be affected by the ongoing trade war between the United States and China from late 2018 to, probably, mid-2019 when the immense Chinese economy could face a slowdown with the weakening Chinese currency and declining imports. (TNA)