Thai govt, central bank play down impact from US govt shutdown
Thai govt and Bank of Thailand say US shutdown will have little impact, citing stable markets and diversified trade measures to protect Thai economy.
Anutin: no effect on tariffs or Thai trade
Prime Minister Anutin Charnvirakul said on Wednesday that the US government shutdown would not affect Thailand, stressing it was an internal American issue.
He said the Thai-US tariff deal had already been agreed earlier, so the shutdown would have no impact on trade duties.
Although the global economy remains volatile, Anutin added that the government had been preparing measures to cushion risks by diversifying export markets instead of relying solely on the US.
Foreign minister calls shutdown an “internal affair”
Foreign Minister Sihasak Phuangketkeow described the shutdown as an internal US political matter, adding that he believed a resolution would be reached soon.
“I affirm that Thailand will not be affected by the situation,” Sihasak said.
US shutdown background
A US government shutdown occurs when Congress fails to pass spending legislation—either appropriations bills or a temporary continuing resolution—to fund federal agencies before the fiscal year begins on October 1.
The latest shutdown, which began on October 1, 2025, is the first since late 2018–early 2019. It stems from a budget deadlock, with Democrats demanding extended Affordable Care Act subsidies and reversals of Medicaid cuts, while Republicans oppose the measures.
BOT: limited economic impact expected
Sakkapop Panyanukul, assistant governor of the Bank of Thailand’s Monetary Policy Group, said the shutdown was unlikely to drag on and would have only limited impact on the US economy since key agencies remain operational.
He noted that the longest US shutdown in 2018 lasted 35 days and reduced US GDP by just 0.02%.
Sakkapop said there had been no irregular movements in Thailand’s financial markets so far. He advised Thai businesses and investors to continue managing risks related to exchange rates and capital investments, as US budget negotiations remained uncertain.
Market response
On Wednesday, the US dollar weakened slightly by 0.2%, while yields on 10-year US Treasury bonds rose 1.2 basis points.
The Thai baht depreciated marginally by 0.09% to around 32.45 per US dollar. Yields on 10-year Thai government bonds edged up by 2 basis points to 1.4%.
