On August 11, 2019, Mrs. Narumon Pinyosinwat, spokesperson for the Prime Minister's Office, revealed that General Prayuth Chan-o-cha, the Prime Minister and Minister of Defense, is concerned about the effects of the global economic situation and trade wars. He has instructed that reports on these impacts be prepared for discussion in the Economic Cabinet. Thailand's export economy has been affected by the slowing global economy and the trade war situation since the beginning of 2018, resulting in a 2.7% contraction in export value during the first five months of the year. However, this contraction is still lower than that of other countries, such as Indonesia and South Korea, which saw export value declines of 8.7% and 7.4%, respectively, during the same period.

          The economic impact of the trade dispute between the U.S. and China is expected to be limited, as it has both positive and negative effects. The negative impacts include products that the U.S. has imposed tariffs on globally, such as electrical circuits, computers, and components. On the positive side, it is anticipated that Thailand can seize opportunities to replace products in the Chinese market, such as agricultural goods and agricultural industry products, as well as in the U.S. market, including agricultural products, food and beverage products, rubber and plastic products, and chemicals.

          Additionally, the trade tensions may lead to a shift in investment from China to Thailand. China was the 7th largest source of foreign direct investment in Thailand in 2018, with a total value of $5.012 billion, accounting for 2.12%, an increase from 2.0% the previous year. In the first quarter of 2019, China moved up to the 2nd position, requesting investment promotion in Thailand for 38 projects worth a total of 9.072 billion baht.

          Therefore, the Prime Minister has assigned relevant agencies to study ways to mitigate negative impacts and adjust structural measures to maximize the benefits from positive impacts for Thailand. These issues will be brought to the Economic Cabinet for further consideration. The Prime Minister emphasized that economic structural reforms must address all three levels of the economy: upper, middle, and lower, focusing on equitable income distribution without leaving anyone behind.

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