Middle East Conflict Casts Shadow Over Thai Economy: Factory Closures and Layoffs Accelerate Amid Supply Chain Disruptions

The escalating Middle East conflict is beginning to have tangible impacts on the Thai economy. Rising shipping costs due to attacks in the Red Sea and subsequent supply chain disruptions are leading to factory closures and layoffs, primarily in Thailand's automotive parts and electrical-electronic industries. While the government monitors the situation and considers support for SMEs, there's a risk of failing to meet economic growth targets if the conflict prolongs.