CrazyExpat Posted June 1, 2014 Report Share Posted June 1, 2014 Thailand, once prized in Southeast Asia for its relative economic stability, is in danger of inheriting the “Sick Man of Asia” tag. The latest coup by the military to end a stalemate between Yingluck Shinawatra’s government and its opponents threatens to send investors scurrying to other countries in the region.The economies of Vietnam, Indonesia, Malaysia, and the Philippines are expected to grow more than 5 percent this year, while Thailand, whose gross domestic product shrank by 0.6 percent in the first quarter, may fall into a recession. Credit Suisse Group (CS) recently forecast that Thai stocks will underperform other markets in the region for one to three years, saying the May 22 “coup leaves investors little reason to stay.” Moody’s Investors Service (MCO) estimated that economic growth could drop 2 to 3 percentage points from its precrisis 4.5 percent if the political instability lasts for a year.Other Asian economies are becoming more attractive. In Indonesia, pro-business candidate Joko Widodo is the front-runner in the July presidential vote; the Philippines is forecast to report its ninth straight quarter of 6 percent-plus growth; and Vietnam is taking steps to loosen its grip on state enterprises. “Countries like Vietnam and the Philippines are snapping at its heels and may overtake Thailand,” says Frederic Neumann, co-head of Asian economic research at HSBC Holdings (HSBC) in Hong Kong. “The constant change in leadership and policy,” he says, is “taking a cumulative toll on Thailand’s economy.” http://www.businessweek.com/articles/2014-05-29/thailands-coup-may-send-investors-to-its-asian-neighbors Link to comment Share on other sites More sharing options...
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