The appointment of Prime Minister Srettha Thavisin in Thailand is expected to provide short-term confidence to investors, but experts anticipate challenges for long-term economic recovery.
The political landscape in Thailand has been volatile, with the Move Forward party winning the general election but facing challenges in gaining approval from the conservative Senate.
The stock market has reflected this instability, with foreign investors being net sellers for seven consecutive months. Delayed fiscal budget announcements have also raised uncertainty. Srettha’s focus is on preventing a recession, but stimulus measures may impact public debt.
Populist policies and social welfare measures could further strain the country’s fiscal situation and sovereign rating.