Thailand's king of 70 years, Bhumibol Adulyadej, passed away on Thursday. The state has declared a year of morning for the world's longest reigning monarch. During his reign, he personified a sense of unity for the Thai people after a history of political violence and instability. The heir apparent, Crown Prince Maha Vajiralongkorn, has asked for some time before he is named king, prolonging a sense of uncertainty about the leadership of the monarchy. Besides the effect of the king's death on the Thai people, this could also have a variety of consequences on the nation's economy. Most notably, given various periods of political violence in the country in the last decade, stock markets could be negatively affected as people wait to see what will happen within Thai political leadership.
I found this story interesting because there are so many effects that this event could have on the nation's economy. Besides potential decreases in investment over the next few months (until investors are certain of a stable political situation), there could also be a decrease in consumer spending as they are wary of their economic prospects. This would have an effect on retailers profits as well. However, this is all merely speculative. In fact, the markets have remained relatively stable since the announcement of the king's death. It remains to be seen how the situation will actually play out.
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