The Wall Street Journal-20080129-Politics - Economics- In Brief

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Politics & Economics: In Brief

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Thailand Elects Samak

As New Prime Minister

Thailand's Parliament yesterday elected Samak Sundaravej prime minister by 310 votes to 163. Mr. Samak, who has the powerful backing of former premier Thaksin Shinawatra, is tasked with trying to hold together a potentially fractious six-party coalition government while pursuing a new pro-growth economic agenda as some of Thailand's biggest trading partners face sharp business slowdowns. Mr. Samak, the 72-year-old leader of the pro-Thaksin People Power Party, comes to power as export-dependent Thailand confronts a risk-laden global trade outlook, as well as weak consumer spending at home.

Former Japanese Official

Sees Growth Rate Falling

Japan's growth rate could fall to 1% or less this year, even if the Bank of Japan brings interest rates back to zero, a former top Japanese Finance Ministry official said. Problems ranging from decelerating global growth, to fragile Tokyo stocks, to a rising cost of living at home could put the brakes on Japan's economy, which economists estimate expanded by a little less than 2% last year, said former Vice Finance Minister for International Affairs Eisuke Sakakibara in a recent interview. The dollar could also, in the coming months, sink to its lowest point against the Japanese currency since 1995, when it hit 95 yen, Mr. Sakakibara said.