Continued Cambodia–Thailand border conflict adds pressure to Thailand’s GDP

The continuing armed conflict along the Cambodia–Thailand border is having a significant impact on Thailand’s economy, according to the report. Tourism and export trade have been hit during the peak travel season, and several businesses have warned that losses could grow rapidly if more countries impose travel restrictions. Tensions have forced the closure of several important border crossings and prompted residents to evacuate, reducing short-term tourism revenue and affecting foreign investors’ long-term confidence in Thailand. Against this background, Prime Minister Anutin has continued to refuse negotiations with Cambodia, the report says. Although supported by some nationalist groups, this stance has added to operating pressures on tourism and trade businesses. Thai economist Pipat Luengnaruemitchai said flooding and border conflict together could discourage tourists from visiting Thailand. Kasikorn Research Center forecast that Thailand’s GDP could decline by about 0.4% if the conflict extends into 2026. Pipat said the provinces bordering Cambodia were the most visibly affected. Previously proposed economic relief measures, including tax cuts and tourism stimulus, had not been fully implemented because of changes in government and the effects of flooding. Several industry organisations urged the government to introduce clear policies promptly to stabilise the investment environment, restore confidence in tourism and reopen border trade routes as soon as possible. Compiled by this station