Could Thailand's airstrikes affect Cambodia's economy?

**Yes, Thailand's airstrikes could significantly impact Cambodia's economy**, particularly in the short term, due to several interconnected factors: 1. **Disruption of Trade**: The Thai-Cambodian border, which is a critical trade route, has been closed due to the escalation of tensions. This closure could lead to a decline in border exports, as suggested by the Department of Foreign Trade, which warns of a potential 60 billion baht reduction in border trade if the situation persists until the end of the year. Cambodia, being a poorer neighbor, relies heavily on trade with Thailand, and this disruption could have severe economic consequences. 2. **Impact on Cross-Border Commerce**: The closure of the border and the ongoing clashes have led to a ban on Thai imports into Cambodia, including fuel, fresh produce, and digital infrastructure. This ban is likely to affect businesses and industries in Cambodia that depend on these imports, further straining the economy. 3. **Investment and Tourism**: The political instability and military clashes have created a hostile environment for investment and tourism, two key drivers of economic growth. The ongoing conflict could deter foreign investment and lead to a decrease in tourist arrivals, both of which are crucial for Cambodia's economy. 4. **Inflation and Supply Chain Disruptions**: The disruption of trade and the ban on imports could lead to shortages and inflation, especially for essential goods. This, combined with potential supply chain disruptions, could increase the cost of living and affect the overall economic stability of Cambodia. 5. **Long-Term Development Constraints**: The escalation of tensions and the historical disputes over the border could lead to long-term development constraints for Cambodia. These conflicts have been ongoing for decades, and the recent escalation could perpetuate a cycle of economic instability and political turmoil. In conclusion, while the full extent of the economic impact is uncertain, the combination of trade disruptions, investment and tourism declines, inflationary pressures, and long-term development constraints suggests that Thailand's airstrikes could have a significant and lasting effect on Cambodia's economy.