Politicians skating on thin ice as the economy may not be able to withstand a political stalemate

[webfact]

Apart from some good news delivered this week by Mr Wichanun Niwatjinda (right) of the Ministry of Commerce in Bangkok on inflation in Thailand, which is on track to be the lowest in the ASEAN bloc, there are clear warning signals from the economy. Capital continues to flow out of the country. 

A vote that delivers a new government led by Move Forward Party leader Pita Limjaroenrat would lift investor sentiment immediately next Thursday but all the political signs suggest this may not be the case. Another potential positive is good news this week from the Ministry of Commerce with Thailand on target for the 6th lowest rate of inflation in the world and the lowest cost of living rise in the ten-member ASEAN bloc in Southeast Asia.

Thailand is already experiencing capital outflows and falling confidence as a result of rising political instability with a clear warning now coming from the country’s financial and investment markets that a protracted battle to elect a new Prime Minister after parliament meets for that purpose on Thursday, July 13th will see further sell-offs with a political stalemate threatening to dangerously exacerbate already serious problems facing the economy with disturbing setbacks in China, a volatile currency, a slowdown in manufacturing and real concern that the country’s inflated level of private banking debt may be a balloon on the verge of popping.

 

Investors in Thailand are watching the country’s tense political process play out very carefully with investment professionals predicting that the course of events over the next few weeks linked to the formation of a government, will have a direct impact on capital flows into and out of the country.

 

by Joseph O' Connor

 

#news

Full story: https://www.thaiexaminer.com/thai-news-foreigners/2023/07/07/politics-skating-on-thin-ice-with-economy-warnings-financial-markets-election-pm/

 

-- © Copyright Thai Examiner 2023-07-08

 

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[flyingtlger]

Way to go...Playing chicken with the economy.

[2baht]

Too many greedy snouts vying for the trough!

[worgeordie]

One of them even sleeping through it.....

 

regards cWorgeordie

[hotchilli]

9 hours ago, webfact said:

Investors in Thailand are watching the country’s tense political process play out very carefully with investment professionals predicting that the course of events over the next few weeks linked to the formation of a government, will have a direct impact on capital flows into and out of the country.

Watch the MP's and senate screw everything up against the the wishes of the voters who want change.

[h90]

the economy does not care about political stalemate.

The economy has a problem with the failed politics of the last 8 years and of the announcement of bad politics for the next 4 years.

 

[poskat]

Unfortunately, the politicians are more interested in advancing their own personal economies rather than the national economy.

[billd766]

5 hours ago, hotchilli said:

Watch the MP's and senate screw everything up against the the wishes of the voters who want change.

And then try to lay the blame for THEIR screw up onto PITA and the MFP.