Thai inflation is highly influenced by global economic developments, complicating inflation control. However, since global shocks generally lead to moderate inflation persistence, policymakers can take a less aggressive stance when responding to such shocks.

Foreign direct investment (FDI) is one of the driving forces binding countries into closer economic interdependence. FDI flows have grown rapidly in recent years associated with the deeper liberalization of national and international investment regimes.

This situation is exacerbated by the country's reliance on foreign technology and passive roles in value chains, limiting knowledge transfer and local firm capabilities.