Will Trump being elected affect the Thai economy?

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Will Trump being elected affect the Thai economy?




It is fair to say the Donald Trump being elected as the 45th President of the United States came as something of a surprise to most people around the world. After all the horror stories and all the predictions, the initial fallout hasn’t been as bad as first feared. Indeed, the main reason for this has been attributed to Mr. Trump’s first speech was seen as consolatory.


Mark Haefele, global chief investment offer at UBS Wealth Management explained: “We clearly saw the market turn when Donald Trump began speaking and rather than continuing with divisive campaign rhetoric, thanked Hillary Clinton, said he would reach out to all Americans and the Democrats for guidance.”


Of course those who are living in Thailand will have concerns about how it will effect life here. The Deputy Prime Minister, Dr. Somkid Jatusripitak has gone some way to addressing these fears by saying that he doesn’t feel the US election will have much impact on the Thai economy. Dr. Somkid said that he expected significant changes in terms of the US policy on trade and the economy, but he also reminded people that Thailand’s own situation was very similar under the military regime as they also imposed major changes to economic and other government policy.


Dr. Somkid’s thoughts were very similar to those of Warotai Kosolpisitkul, the Fiscal Policy Officer director-general who explained why the Stock Exchange of Thailand had suffered initial falls following the announcement of Mr. Trump’s election. He said “Investors dumped the US dollar and went to gold and the Swiss Franc as a safe heaven and that would make the baht weaker against the greenback.”


Mr. Warotai also went on to explain further why he was confident that the Thai economy would remain largely unaffected by the news in the States. He said that Thailand holds large reserves all many foreign currencies and would therefore be able to weather the initial falls. He also suggested that he expected the uncertainty would die down after a short period of time and that investor confidence would soon return.


The Thai economy is currently strong after several years of sustained growth, something that is expect to continue at rates of between 2.9% and 3.3% up until the end of 2018. External factors in reality have had little effect on the Thai economy in recent years so it appears that Dr. Somkid’s and Mr. Warotai’s have some historical evidence to support their predictions.


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BANGKOK 25 June 2017 07:17