Thailand is entering a new phase of political uncertainty, which threatens to inflict further damage on the country’s fragile financial markets.
In the coming weeks, Thai courts will decide the fate of Prime Minister Srettha Thavisin, ex-leader Thaksin Shinawatra and the main opposition party. Although the outcomes are far from clear, the cases could result in Srettha’s ouster, the collapse of the coalition government effectively led by Thaksin and a resumption of street protests by opposition supporters.
It’s all happening against the backdrop of stock market losses, baht weakness and capital outflows. Already roiled by a row between the government and the central bank over monetary policy, investors now face the prospect of political unrest that risks leaving key economic plans such as the 2025 budget in limbo.
