South Korea this week confirmed plans to lift defence spending by 8.2% in 2026, the sharpest rise in nearly 20 years, as US pressure pushes allies to shoulder more of their own security burden. Korea boasts a sophisticated domestic defence industry. As a result, a large share of new spending is likely to remain inside the country rather than leak into imports.
Meanwhile in Thailand, new PM Anutin Charnvirakul unveiled a short-term stimulus package this week – including subsidies, debt relief and cheap loans – to lift demand ahead of elections next year. While politically expedient, these measures highlight how populist policies continue to take priority over the deeper structural reforms that Thailand’s economy needs.
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