Political developments have once again taken centre stage over the past month. Most attention has focused on Thailand, where the army has staged a military coup. This may help to reduce uncertainty in the near-term, but it brings a lasting resolution of the political conflict no closer, and is likely to further undermine confidence in the country. Meanwhile, relations between Vietnam and China have taken a turn for the worse amid growing tensions in the South China Sea and a wave of anti-China protests across Vietnam. The unrest is likely to worry foreign investors, who have played a key role in the success of the country’s export sector in recent years. However, it is not all bad news. The election of Narendra Modi as the new prime minister of India has boosted the prospects of meaningful economic reform in the country.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services