Thailand

The violence in Thailand's southern provinces, which has raised external concern over political and economic risk, has shown no signs of dissipating. In November, a local policeman and two suspected insurgents were killed in armed conflict, and a separate bomb attack outside the education ministry resulted in a single casualty. Against this backdrop, there is increasing apprehension over the potential economic impact of insurgency in Thailand's restive south. With the central bank having announced that foreign arrivals had fallen by 24% year-on-year in July, we expect the government policies of dealing with violence in the south to come under increasing

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