Bangkok: Academics have raised concerns that the ongoing crisis in the Middle East is increasing risks to the global economy, urging a gradual approach to supporting oil prices. Associate Professor Dr. Kiatianan Luangkaew from the Economics Department at Thammasat University shared his insights on the Good Morning ASEAN program on MCOT NEWS FM 100.5, highlighting the conflict's potential long-term impact.

According to Thai News Agency, Dr. Luangkaew explained that while the United States perceives the energy crisis as potentially short-term, the macroeconomic outlook suggests a prolonged and unpredictable situation. This volatility could pose significant risks to the global economy and have both immediate and lasting effects on the Thai economy.

Thailand, in particular, faces challenges such as global economic uncertainty, which may affect exports, tourism, and investment. Investors might prefer lower-risk regions, and although the immediate risks to oil prices appear contained, a major Middle East conflict disrupting oil production could drive prices up by 15-20%.

Dr. Luangkaew emphasized the importance of managing oil supply to ensure availability rather than focusing solely on price control. He advised the Thai government to transparently communicate information on national oil reserves to mitigate confusion and prevent hoarding, which could exacerbate shortages. Additionally, he recommended a phased approach to oil price support, allowing the public time to adjust while accelerating efforts to find alternative energy sources.

The continuation of the crisis could lead to the Thai economy underperforming, given its high dependency on the global economy. The rising cost of living, particularly affecting low-income groups, is another concern. Dr. Luangkaew advised individuals to manage their finances carefully, maintain liquidity, and brace for potential economic challenges in the future.