Thailand’s new prime minister boosts optimism, but his populist policies pose fiscal risks
2023-09-25 09:29:59 source：CNBC
September 24, 2023
Months of political deadlock and stock market volatility have finally come to a close in Thailand. The appointment of new Prime Minister Srettha Thavisin is expected to boost investor confidence in the short term but experts say the long-term economic recovery will prove challenging.
While the Move Forward party won May’s general election, it was unable to obtain approval from the conservative Senate. A volatile summer ensued as election runner-up Pheu Thai abandoned MFP to form a new coalition government with two military parties — the Palang Pracharat Party and United Thai Nation Party — as well as the moderate Bhumjathai Party.
Srettha, Pheu Thai’s choice for leader, was appointed prime minister on Aug. 22 — the same day that former prime minister and Pheu Thai founder Thaksin Shinawatra returned to Thailand after 15 years of self-exile. Thaksin’s return is likely part of a power-sharing deal that Pheu Thai negotiated with the military establishment, according to political watchers, who believe he will eventually receive a royal pardon under Srettha’s administration.
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