Bangkok: The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) has announced that the energy shortage issue in Thailand is beginning to ease, thanks to ongoing temporary ceasefire negotiations between the United States and Iran. Despite the improved situation, oil exports to neighboring countries will remain suspended, as stated by the committee. According to Thai News Agency, Mr. Payong Srivanich, Chairman of the Thai Bankers Association, alongside Mr. Poj Aramwattananon, Chairman of the Thai Chamber of Commerce, and Mrs. Pimjai Leeissaranukul, Chairman of the Federation of Thai Industries, addressed the media following a meeting of the Joint Committee of the Three Private Sector Institutions (JCC). Mr. Payong indicated that the risk of disruption in the energy supply chain is diminishing, attributed to the ceasefire, which has alleviated concerns about production impacts and led to a drop in energy prices. The price of oil, for instance, fell from US$75 to US$68 per barrel in June 2026. N onetheless, lingering damage to oil infrastructure and low OECD oil reserves may prevent further significant price reductions, keeping energy security a priority. Mr. Payong also highlighted discussions from the JSCCIB meeting on global trends, particularly the influence of AI and data centers on the Thai economy. These factors are crucial for sustaining export growth and enhancing private sector investment. Despite an improved GDP forecast of 2.3% by the Bank of Thailand, the economy is witnessing uneven K-shaped growth, with low household purchasing power and a weak labor market. While exports and foreign direct investment are strong, they have not translated into broad economic activity, as evidenced by low capacity utilization in traditional industries. SMEs are not benefiting from the growth, emphasizing the need for collaboration to leverage technology and FDI to boost entrepreneur capabilities and labor productivity. The JSCCIB forecasts that by July 2026, Thailand's GDP will grow by 1.6-2.0 percent, with export growth between 8.0-10.0 percent, following a contraction earlier in the year. Inflation rates are expected to rise to 2.5-3.0 percent. The committee is advocating for restructuring towards a new economy to improve competitiveness, despite Thailand's improved IMD assessment to 26th place in 2026. Key structural reforms, including data integration and systemic cost reduction, are essential to maintain momentum as neighboring countries advance. In collaboration with the World Bank and various sectors, the JSCCIB is organizing the Affiliated Program IMF-World Bank Annual Meeting 2026. This event aims to showcase Thailand's economic potential and reinforce global confidence in the country's new economic model, focusing on productivity, innovation, and investment in future industries.
