According to a report by Jinshi data, Thailand is plunged into a new political crisis, posing a threat to the economy. Analysts say that even if Prime Minister Petongtan survives the rift within the ruling coalition, key legislation may stall, affecting tariff negotiations with the United States and shaking investor confidence.
If the Petongtan government collapses, it will undermine efforts for economic growth. Thailand's economic growth last year has already lagged behind its neighbors. Analysts at Mizuho Bank indicate that increasing political uncertainty may force the Bank of Thailand to accelerate interest rate cuts by 50 to 75 basis points to address the damage to business confidence and weak market sentiment.