Bank of America: If oil prices soar to $120 per barrel, Thailand will face the risk of stagflation.

Bank of America Merrill Lynch said in a research report that if oil prices continue to surge to around $120 per barrel and remain at that level for six months, Thailand may fall into stagflation, dragging down economic growth. As a major net energy importer, Thailand is extremely vulnerable to the impact of rising energy costs, which may have adverse effects on the tourism industry, exports, and domestic consumption. Additionally, the sustained surge in energy prices may also put pressure on public finances. However, Bank of America Merrill Lynch has still raised its 2026 GDP growth forecast for Thailand from 1.6% to 1.8%, citing stronger-than-expected economic performance in the fourth quarter as laying a more solid foundation for this year's economy.