Thailand’s Credit Rating Affirmed at BBB+ with Stable Outlook, Economic Growth Anticipated

BANGKOK: S and P Global Ratings has affirmed Thailand's credit rating at BBB+ with a stable outlook, projecting moderate economic growth over the next several years. The agency expects the Thai economy to recover from the impacts of recent global challenges, supported by government economic measures and a resurgence in the tourism sector. According to Thai News Agency, S and P anticipates Thailand's GDP to grow from 1.9 percent in 2023 to 2.8 percent in 2024 and 3.1 percent in 2025. The average GDP growth is projected to be 3.0 percent during the period from 2024 to 2027. The budget deficit to GDP ratio is expected to average 3.3 percent during 2025-2026, as the government continues to implement strategic economic initiatives. S and P recognizes the Thai government's focus on investment, aligning with national strategies such as the development of the Eastern Economic Corridor (EEC) and enhancements in transportation infrastructure. State enterprise investments and public-private partnerships are expected t o be central to advancing infrastructure projects. The agency forecasts a 3.3 percent increase in net government debt to GDP in 2025, attributed in part to a stimulus measure involving a 10,000 baht transfer. The recovery of the export sector is anticipated to keep the current account balance in surplus, averaging 2.3 percent from 2024 to 2027. The tourism sector, a vital component of Thailand's economy, has shown significant recovery, with foreign tourist numbers projected to reach 28.8 million between January and October 2024, marking a 29.3 percent increase from the previous year. S and P will closely observe Thailand's economic growth, comparing it to nations with similar income levels, and monitor political stability as key factors influencing the country's credit rating. A consistent economic policy could elevate Thailand's credit rating to "A-", with political stability playing a crucial role in achieving this upgrade.