The Thai government is closely monitoring US economic prospects and the potential for a global recession, while also stepping up its plans to mitigate the impact on exports.
According to Commerce Minister Phumtham Wechayachai, the Commerce Ministry has been continuously monitoring economic prospects in the US, which are raising concerns about the risk of entering a recession, causing global market apprehension and significant downturns.
"The government will not let Thai businesses and consumers be disadvantaged or affected. We're not just looking at the impact from the US alone, but the entire global situation. We have been coordinating and meeting with small, medium-sized and large entrepreneurs to help them adapt to global changes. The ministry is seeking solutions and will provide updates on its progress," he said.
According to Mr Phumtham, his ministry has already prepared for possible impacts, understanding that the political situation, the economic situation, wars, and arrangements relating to the new world order pose obstacles to exports.
Therefore, the ministry has been continuously looking for ways to manage and systemise responses to these ongoing changes, he said.
Regarding concerns that e-commerce companies entering the Thai market may impact local businesses, Mr Phumtham noted that the ministry is also aware of this issue.
Nevertheless, he emphasised that the current global trade system is increasingly shifting towards online commerce. These concerns remain speculative, and the situation will need to be observed further, he added.
Additionally, Mr Phumtham said the Commerce Ministry plans to convene economic agencies, including the Industry Ministry and the Public Health Ministry, to discuss import-export standards.
These discussions will focus on industrial standards and the standards of the Food and Drug Administration. The talks will aim to find ways to control and prevent issues or amend any obstructive laws without violating World Trade Organization agreements, said Mr Phumtham.
In a related development, in an interview following the weekly cabinet meeting on Tuesday, Prime Minister Srettha Thavisin said he has been closely observing and monitoring the global economic situation.
He believes the current situation is likely driven by concerns rather than actual conditions, and is confident the US has measures in place to stimulate the economy.
"Yesterday morning, I observed the stock market conditions and saw that it had rebounded somewhat from Monday's decline. Similarly, Japan's Nikkei index had also recovered in the morning," Mr Srettha said.
When asked about the influx of cheap Chinese products into the market, the premier said he had instructed the Ministry of Commerce to closely monitor and manage this issue.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), warned of a potential unpleasant impact on Thai exporters and entrepreneurs in the manufacturing sector if the US economy entered a recession.
"The export sector will be the first to be affected by this new crisis, followed by manufacturers," he said.
"Factories are already facing sluggish sales, with no new orders for their products."
The Thai Industries Sentiment Index fell to 87.2 points in June, hitting the lowest level in 24 months as the nation struggles to restore the economy amid a risk of higher operating costs for reeling small and medium-sized enterprises, the FTI reported earlier.
The drop was attributed to sluggish sales, lower purchase orders and a decrease in manufacturing, amid a slow economic recovery and weak consumer purchasing power.
Mr Kriengkrai said investors were also worried over the prospect of a recession in the US. Stock indexes in many countries plunged on Aug 5, mainly due to concerns over US economic health.
"This affected economic confidence and also dealt a blow to the Thai stock market," he said.
US economic circumstances are among the factors that sparked fresh concerns over the global economy.
There are also worries that tensions between Iran and Israel could escalate, worsening geopolitical conflict between nations, Mr Kriengkrai said.