Thailand's economic downturn weighs on property market

Having approved a new Constitution, with campaigning against it being punishable by 10 years in prison, Thailand seems fated to perpetual government by military junta. Even if there is an election in 2017, the prime minister will be appointed  by the military, as will a powerful 250-seat Senate. But with Thailand´s urban electors thoroughly tired of street demonstrations and clashes, for the moment many seem willing to tolerate what they´ve got.  After all, Bangkok´s middle and upper class was especially irritated by Thaksin Shinawatra´s populist and corrupt rule.

For the property market, which is losing steam, all this arguably matters less than the fact that Thailand’s economy is weak.  Thailand is set to grow at a slower pace than most other nations in Southeast Asia, according to the IMF, its long-term prospects weighed down by structural problems including “rapid population aging, relatively low education quality and skill sets, and overdue structural transformation.”  It underperformed much of the region with 3.2% growth in the first quarter of 2016, according to the Bureau of Trade and Economic Indices. The IMF forecasts the Thai economy will expand by 3% in 2016, and by 3.2% in 2017.