Thailand is entering a new phase of political uncertainty that threatens further damage to the nation’s fragile financial markets.
Over the next weeks, Thai courts are set to decide the fate of Prime Minister Srettha Thavisin, ex-leader Thaksin Shinawatra and the main opposition party. While the outcomes are far from clear, the cases could result in Srettha’s ouster, an unraveling of the coalition government effectively run by Thaksin and a resumption of street protests by supporters of the opposition.
It’s all happening against a backdrop of stock market losses, baht weakness and capital outflows. Already spooked by a spat between the government and the central bank over monetary policy, investors now face the prospect of political upheaval that risks keeping important economic bills such as the 2025 budget in limbo.