While retail sales in Korea remain just over 2% below pre-pandemic levels, there are growing signs the worst is behind us. Consumer sentiment has rebounded sharply following the recent presidential election, reaching a four-year high in June. Additional support is coming from a government stimulus package – including vouchers worth 0.5% of GDP – and recent interest rate cuts.
Thailand faces renewed political uncertainty after the Bhumjaithai party withdrew from the coalition government over a border dispute with Cambodia. A no-confidence vote is expected next week and could trigger fresh elections if the government falls. This instability risks undermining already fragile consumer and business sentiment. Given Thailand’s history of political turbulence, the latest developments could weigh further on the country’s economic prospects.
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