The fiscal response, political worries in Thailand

The policy response to the coronavirus outbreak has so far been led by the region’s central banks, but governments are also now stepping up to the plate. Earlier this week, Singapore unveiled a budget which incorporates a spending boost worth 1.3% of GDP. Over the coming days, more countries are likely to announce fiscal support packages of their own. Debt levels in Asia are relatively low compared with elsewhere in the world, and most countries have room to loosen policy. Meanwhile, political unrest in Thailand could resurface following the decision of the constitutional court on Friday to disband the country’s third-largest political party, Future Forward Party.