Thailand's grief: An unstable economic future ahead?
As Thailand mourns, how will foreign investors deal with the ensuing political instability? Plus, Saudi diversification.
22 Oct 2016
Al Ja Zeera
The king is dead and Thailand is officially in mourning for an entire year. So what sort of impact will this have on the country and its economy, especially after a decade filled with political turmoil?
In 2004, tourism was accountable for up to 19.3 percent of Thailand's GDP, but with the military coup of 2014, the traditionally resilient Thai economy struggled.
Now with the country in a subdued mood - especially for the first 30 days after the king's death - there are concerns there could be an economic downturn. The growth forecast has already been set for only 3.1 percent this year.
But beyond that, there's the issue of a decade of political instability in Thailand - the type which can easily put foreign investors off.
How likely is a long-term downturn as a result of said unpredictability?
"That is the big question," says Reuben Mondejar from City University of Hong Kong. "We will have to see what the effect will be of the handover, of the change. The king died, and the crown prince has asked for the coronation to be postponed, and there seems to be a power struggle going on ... investors will take a look how that plays [out] ... stability is the key for investment."
Whether we're talking military, civilian or monarchy, the leadership in Thailand will have to work to safeguard its economy.
Source: Al Jazeera
Click the following link to see the video clip
http://www.aljazeera.com/programmes/countingthecost/2016/10/thailand-grief-unstable-economic-future-161022090036154.html
