Limited impact expected from new government’s stimulus amid political uncertainty

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The impact of the new government‘s stimulus measures on the economy is expected to be minimal, as the stock market has already accounted for risks associated with political issues, according to the SCB Chief Investment Office (SCB CIO).

 

Kampon Adireksombat, first senior vice-president and head of SCB CIO, stated that the formation of a new coalition government is still uncertain and could take longer than usual, as appointing a prime minister requires at least 376 votes combined from the House of Representatives and Senate.

 

He said…

“The Thai economy is trying to recover during this political process.”

In the first quarter, the economy experienced a 2.7% year-on-year growth, compared to 1.4% in the fourth quarter of last year. Supported by a strong recovery in private consumption and tourism, the economy expanded by 1.9% on a seasonally adjusted quarter-on-quarter basis, compared to a contraction of 1.1% in the fourth quarter of 2022.

 

by Alex Morgan

Top Photo Caption: Political parties at a meeting of coalition parties in Bangkok, Image via LinkedIn

 

Full story: https://thethaiger.com/news/business/limited-impact-expected-from-new-governments-stimulus-amid-political-uncertainty

 

-- © Copyright Thaiger 2023-05-25

 

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