Inceptial Offers Trading Opportunity Following Oil Spike
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A recent World Economic Outlook for Thailand from the World Bank shows that the Southeast Asian country is making a slow recovery after a decade of economic dips.
A projection of 1% for economic growth in 2021 shows that the tourist nation still has a long journey to undertake following the economic impact of the global pandemic.
The government of Thailand continues to remain optimistic up until the recent events in Eastern Europe.
The ongoing invasion of Ukraine by Russia has seen several key economic activities stall as several nations levy sanctions against the former Soviet Union. These actions have brought about rising energy costs and global trade tameness. The outlook is looking bleak for several countries.
Thailand Caught In The Middle
The Thailand economy has shown resilience in the last four decades. The tourist nation saw a remarkable economic resurgence in the late ‘90s by 7.5% soon after the Asian Financial Crisis of the period.
A sudden dip to 5% saw a retracement in the country’s financial fortunes. Many economic experts projected that the country would slowly pick up the pace once more. This was not to be as Thailand saw its economic growth continue on a downward spiral with its 2018 growth dropping to 4.2%.
The following year, Thailand’s economy stalled even further, losing 1.8% in a growing economic face-off between the US and China. This economic dip was compounded with the global pandemic causing the global trade to cease for months and pushing the Thai economy near the negative.
Thailand just recently picked up the pace, as global trade resumed, only for the Ukraine crisis to rear its ugly head. Ongoing tensions between former Soviet nations, Russia and Ukraine, is having far-reaching consequences as both countries are key import locations for certain household items.
Russia may seem the most impacted following a string of sanctions on the aggressor and President Vladimir Putin. However, the Thai Chairman of the Chamber of Commerce, Mr Sanan Angubolku, believes that there are far more consequences than the embargo on Russia and its citizens.
A more recent issue is the rapid rise of energy costs following the oil embargo on Russia.
The former Soviet nation reportedly exports 5 million barrels of oil a day, and this accounts for about 10% of the global oil supply. The embargo has seen the Brent Crude oil surge from $62 to $125.6 at press time, pointing to a dire economic situation if the economic and humanitarian aggression continues.
The likely impact is higher premium prices for oil and more stalled economic growth for the tourist nation. Thailand’s look at its tourist space may not yield solace for the country as the global community becomes wary of travelling in a hostile world.
Silver Lining To A Rainy Day
While these are circumstances no one wishes for, savvy investors are in the market to profit, especially as the global oil price pushes beyond the $62 benchmark set out at the beginning of the year.
If you intend to trade, there is no better investment hub than Inceptial. The financial investment services provider offers access to over 160 tradable assets, 30+ trading indicators, and high leverage of 1:500 for you to increase your profitability.
