Death of beloved Thai king unlikely to cause major economic disruption

Thailand is unlikely to face major economic disruption after the death of revered King Bhumibol Adulyadej, although many people in the country will be grief stricken, some risk analysts and diplomats said.

Hundreds of people were gathered outside Bangkok’s Siriraj Hospital, many weeping. Crown Prince Maha Vajiralongkorn – who is expected to succeed his father – visited him earlier in the day.

Neither the government nor palace has released any plan for mourning and there was no immediate announcement of a succession. Three government spokesmen declined to take telephone calls on Thursday for comment on this story.

The military government has pushed through a new constitution that it hopes will ensure its oversight over stable government for years to come and it looks firmly in control for a royal transition.

The government might postpone to 2018 a general election scheduled for next year, and Thai stocks and the baht currency are likely to be volatile immediately after the king’s death, the Eurasia Group of risk analysts said in a report issued before the announcement of the king’s death.

But given a smooth transition, major disruption is not expected, according to five diplomats in Bangkok who spoke to Reuters.

“We expect the royal succession to designated heir Crown Prince Maha Vajiralongkorn will be stable and that market volatility around the king’s death will not be long-lasting,” Eurasia Group said.