This has had a negative impact on investor sentiment and foreign diplomacy, although the military government, led by Prime Minister Prayuth Chanocha, has since moved to appoint an interim government and legislature, enacting a host of sweeping reforms already under way under the previous administration, and moving to improve growth and investor sentiment through a number of stimulus packages, rising spending and infrastructure investment.
Drought conditions caused by the El Niño weather pattern have seen output ease in Thailand’s agricultural sector, with water shortages predicted to slow economic growth in 2016.
In early April the government declared 74 of the country’s 77 provinces as either drought-stricken or drought-affected areas.
The dry weather conditions are set to continue until the onset of the monsoon season, which is expected to begin in the second half of May, according to the Thai Meteorological Department.