Panel upbeat after Democrat gains in US midterms
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) expects geopolitical tensions and volatility in global energy markets caused by the Middle East conflict to ease following the Democrats' victory in the US midterm elections.
Following the Democrats' victory in the United States midterm elections, which resulted in a majority in both the Senate and House of Representatives, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) anticipates geopolitical tensions and energy market volatility arising from the Middle East conflict to subside.
The JSCCIB believes the new power dynamics in Congress may scrutinize policies, particularly those related to Iran, leading to an improvement in the situation in the country. Poj Aramwattananont, chairman of the Thai Chamber of Commerce, expressed optimism that easing tensions could stabilize energy prices and reduce supply chain disruptions stemming from the Middle East conflict.
However, he refrained from commenting on US foreign policy, recognizing its sensitive nature for Thailand. While media reports suggest that although President Trump retains primary control over foreign policy, a Democrat-led Congress could influence decisions through oversight, investigations, legislation, and budget approvals, as well as review military actions and seek to condition or restrict funding.
The JSCCIB has also revised its export growth forecast for 2026 to 18-22%, up from the previous range of 12-16%, and reduced its inflation projection to 2.1-2.5%, down from 2.5-3.0%. Thai economic growth is projected to reach 2.4-2.6% this year, up from an earlier forecast of 2.1-2.5%. Despite this optimistic outlook, the committee remains cautious about Thailand's uneven recovery, with different sectors advancing at varying rates.
Economist Phacharaphot Nuntramas from the JSCCIB and Krungthai Bank highlighted that the disparity is evident in the government's revised Manufacturing Production Index (MPI), with digital technology-driven industries flourishing due to global trends in artificial intelligence and data centers, while businesses reliant on domestic consumption continue to struggle with weak purchasing power.
Federation of Thai Industries chairwoman Pimjai Leeissaranukul explained that the revised MPI methodology aims to better capture Thailand's manufacturing sector's adaptation to global digital trends reshaping the economy.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
