Fitch Ratings affirmed Thailand’s ‘BBB+’ rating with a Stable Outlook, highlighting strong external finances and GDP growth projections of 3.1% for 2025, tempered by structural challenges and governance issues.
Fitch Ratings Affirms Thailand’s IDR
Fitch Ratings has affirmed Thailand’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB+’ with a Stable Outlook. This rating reflects the country’s solid external financial positions and robust macroeconomic framework, although it is tempered by challenges in structural aspects such as lower per capita income and moderate governance scores.
Economic Growth Projections
Looking ahead, Fitch forecasts Thailand’s GDP growth to accelerate to 3.1% by 2025, fueled by a recovery in tourism and increased public spending, particularly supported by a revised fiscal year 2025 budget. Nevertheless, the outlook remains cautious due to potential risks from added government stimulus, demographic challenges, and other external uncertainties.
Fiscal Outlook and Stability
Fitch anticipates that Thailand’s public debt will stabilize around the median levels of comparable countries if fiscal plans are adhered to. Despite projected increases in government deficits, a current account surplus is expected to bolster external stability. Overall, while challenges persist, Thailand’s banking sector remains stable, underpinned by solid capital and liquidity levels.
Source : Fitch reaffirms Thailand’s ‘BBB+’ rating with stable outlook
