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.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
