The Thai political crisis shows no sign of subsiding. Indeed, political violence is on the rise. And since Thailand is an important part of the regional economy, its problems have has produced far-reaching effects on its economic partners, including Japan.
Already the crisis has exacted a toll on the Thai economy. This year Thailand's economy is expected to grow 4.3 percent, down from an earlier projection of 5.2 percent. Economic growth could fall to as low as 3 percent if the political unrest persists.
For now, many foreign investors remain committed to Thailand, although Japanese companies are closely monitoring Thai political developments. They have put in place backup plans to avoid unfavorable consequences as a result of an escalation in political conflict.