Coup effect on Thai economy minimal.

The current situation in Thailand is as follows: Following the September 19, 2006 bloodless coup, the country's military leaders began issuing a series of orders and statements. Within days of the coup, on September 25, 2006, in a filing from Bangkok, the Associated Press (AP) reported, "Thailand's military rulers on Monday reaffirmed their support for the country's long-standing commitment to a free market economy, the free movement of capital and open foreign and domestic investment."

This was the coup leaders' first economic policy statement, which was characterized by a report on the same day in the International Herald Tribune (Neuilly) as an "anodyne statement about helping support Thailand's economy."

An international consensus is building that the military coup is not likely to affect Thailand's economic prospects. And the coup may even have a positive effect. For example, on September 30, 2006, Reuters reported, "Some economist believe the coup to oust the government of [the former prime minister] had created short-term uncertainty but could also resolve a political crisis that had paralysed decision making this year."

In a September 2006 "Country Focus" on Thailand (15:9), Market: Asia Pacific passed along the widely reported warnings of a coup as well as noting the possible damage to the economy by political paralysis.

In recent days the military has also drafted a "charter" to provide a framework for government activity until a new constitution is drafted. Elections are tentatively set for October 2007. In addition, an interim prime minister has been appointed.

The Tribune reported on recent polls showing that a "large majority" of Thai citizens were in favor of the coup. The main reason for this is because the coup is supported by the country's popular king.

Consumer spending was in decline well before the coup took place. After the coup, as reported in the above cited Reuters story, consumption was said to be "in the doldrums" along with investment. The ultimate source for this information was the Bank of Thailand (BOT), the country's central bank. The BOT also released data that showed Thai exports were still strong. Exports are a main driver of the Thai economy.

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