US government shuts down as Congress fails to pass funding bill
The US government has shut down after Congress failed to pass spending legislation. The closure began on 1 October 2025, marking the first such event since late 2018. Thai officials have stated that the shutdown will have minimal impact on the country's economy and trade. A shutdown happens when US lawmakers cannot agree on funding bills, forcing federal agencies to close. The current halt follows the longest shutdown in history, which lasted from October to November 2025. That earlier closure slowed US economic growth to 0.4% in the final quarter of the year and sharply reduced government spending.
Thailand's government and central bank have downplayed concerns about the latest shutdown. Foreign Minister Sihasak Phuangketkeow called it an internal US political issue with no direct effect on Thailand. Prime Minister Anutin Charnvirakul echoed this view, adding that tariffs and trade would remain unaffected.
Financial markets showed only minor reactions. The Thai baht weakened slightly by 0.09% to around 32.45 per US dollar. Yields on 10-year Thai government bonds rose by 2 basis points. In the US, the dollar dipped by 0.2%, while yields on 10-year Treasury bonds climbed by 1.2 basis points.
Sakkapop Panyanukul, assistant governor of the Bank of Thailand's Monetary Policy Group, expects the shutdown to have a limited economic impact on the US. Officials in Bangkok have reiterated that Thailand's economy will remain stable despite the disruption in Washington. The shutdown has caused small fluctuations in currency and bond markets. Thai authorities continue to monitor the situation but insist there will be no major consequences for trade or economic policy. For now, the effects on both the US and Thailand appear contained.
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