BANGKOK, (Reuters) – Thailand’s economy could grow slower than expected this year because of the Ukraine crisis, which has a negative impact on trade, tourism and consumption. This was stated by its finance minister on Tuesday.

Arkhom Termpittayapaisith stated that there will be an impact – it is possible for growth to come off the lower forecast slightly a bit,” Arkhom said at a press conference. He was referring specifically to Russia’s invasion in Ukraine.

Arkhom indicated that the forecast for 7 million foreign tourists arriving in Southeast Asia could be surpassed by the ministry.

He said that the rising cost of goods has led to a slowdown in domestic consumption.

He said that the impact of the conflict in Thailand on the economy was being reevaluated by the finance ministry, central bank, and state planning agency.

Arkhom indicated that government officials are considering measures to lower people’s living expenses. This includes utility subsidies.

Arkhom reported that the cabinet approved Tuesday a reduction of six months in excise taxes on diesel and oil for power generating. This will help to lessen the negative impact of rising fuel prices.

($1 = 33.17 baht)