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Thai coup raises fears for 'sick' economy

Published on Jun 8, 2014 12:25 PM

BANGKOK (AFP) - The last time Thailand had a coup, the stock market crashed when the kingdom imposed draconian capital controls. This time around, investors hope the generals have learned their lesson.

Markets have largely taken May's military takeover in their stride, but there is still nervousness about a regime that has put the air force chief in charge of the economy and appointed the navy commander to oversee tourism.

Experts say the last putsch, in 2006, showed that soldiers lack the expertise to run Southeast Asia's second-largest economy.

"The military government struggled to manage the economy, reflecting the lack of technocratic skills in economic management and administration," recalled Rajiv Biswas, chief Asia economist at the IHS consultancy firm.

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