"Thailand's Optimistic New Prime Minister: Balancing Populist Policies and Fiscal Risks"

The appointment of Thailand's new Prime Minister Srettha Thavisin is expected to boost investor confidence in the short term, but experts warn of long-term economic challenges. The political deadlock and stock market volatility in recent months have delayed the unveiling of the 2024 fiscal budget, creating uncertainty among investors. Srettha's proposed stimulus measures, including cash handouts and welfare spending, could further increase public debt and derail fiscal consolidation. While some experts believe that Pheu Thai's populist pledges may not materialize due to opposition from conservative factions, there are concerns about the fiscal risks associated with these policies. Additionally, Srettha's government may need to show some progress on military reforms to maintain public appeal.