Thailand's prolonged political deadlock weighs on economy

Businesses fear government spending, FDI will be hit by transition delay

20230809 Wat Phra Kaeo 2

Tourists at the Wat Phra Kaew temple complex in Bangkok on Aug. 7. The Tourism Authority of Thailand fears budget delays could affect its tourism promotion plan. (Photo by Ken Kobayashi)

APORNRATH PHOONPHONGPHIPHAT, Nikkei staff writer

BANGKOK -- Nearly three months after the May 14 general elections, Thailand's uncertain political future has weighed on the economy, likely delaying government spending that is key to the country's post-COVID recovery.

The business sector has raised concerns over the slow pace of forming a new government and choosing a prime minister, triggering fears that the political deadlock could dampen confidence among foreign investors at a time when the economy needs more foreign direct investment.

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