NationThailand-Sept 9
Political turmoil drags Thailand and Indonesia to the bottom of ASEAN’s growth, while Malaysia, Vietnam and the Philippines surge ahead. While Malaysia, Vietnam and the Philippines enjoy strong economic momentum fueled by domestic demand and robust private investment, political uncertainty has pushed Thailand and Indonesia to the bottom tier of ASEAN’s growth league. At a time when political volatility is reshaping the region, several ASEAN countries are facing unprecedented challenges with direct impacts on their economies. Yet, neighbors such as Malaysia, Vietnam and the Philippines are demonstrating sustained strength, with steady expansion in exports and private sector activity. By contrast, Thailand and Indonesia are at a crossroads, where political turbulence has slowed growth that was once expected to accelerate. The cases of Indonesia and Thailand highlight how political uncertainty has become a key risk factor for ASEAN’s economies. While neighbors such as Malaysia, Vietnam and the Philippines press ahead with infrastructure investment, industrial expansion and rising exports, Thailand and Indonesia are mired in conflict — both domestic and cross-border — eroding investor and consumer confidence. Restoring political stability swiftly is now the central task for Anutin’s government, widely seen as the key to unlocking Thailand’s latent economic potential and returning the country to a path of sustained growth. The turmoil sent Indonesia’s stock market and the rupiah tumbling by as much as 3.6% before partially recovering, forcing the Bank of Indonesia to intervene to stabilize the currency and reassure investors. Radhika Rao, senior economist at DBS, told The Business Times: “If the government’s reforms and compromises are seen as insufficient, public discontent could further erode demand in consumption, tourism and investment.” Read more at: https://www.nationthailand.com/business/economy/40055173
