The Fitch Ratings’ report on Thailand’s economic status which is affirmed at ‘BBB+’ with stable outlook, according to government spokesperson Chai Wacharonke. According to the report, Mr Chai said, Thailand’s stronger growth will be bolstered by a steady tourism recovery, and a gradual strengthening of merchandise export momentum.
Fitch forecasts Thailand’s GDP growth will accelerate to 3.8% in 2024 after a weaker expansion than expected of 2.8% in 2023. A faster tourism recovery and larger fiscal spending than earlier anticipated could boost near-term growth further.
However, Fitch projects the general government deficit (Government Finance Statistics basis) will increase to 3.7% of GDP in FY2024 (BBB median: 2.9%), from an estimated 3.0% in FY2023.
Thailand’s resilient external finances remains a core strength, and should provide a sufficient buffer to tightened global financial conditions and geopolitical risks. Fitch also forecasts the current account will flip back into a surplus of 1.0% of GDP in 2023, from a 3.2% deficit in 2022, with foreign reserves covering 7.1 months of current external payments, above the projected ‘BBB’ median of 5.0 months.
According to the Fitch report, factors that could, individually or collectively, lead to negative rating action/downgrade for Thailand are the ability to stabilize General Government Debt to GDP and the country’s economic policymaking effectiveness.
Mr Chai urged the public to have confidence on economic policymaking under the Government of Prime Minister and Minister of Finance Srettha Thavisin.
Fitch report has demonstrated that there are supporting factors for economic recovery through policy implementation, be it, economic stimulus measures, farmer debt moratorium, and visa exemption for tourists from China and India, among others.
The government strives to continue implementing more economic stimulation policies for the better quality of life of the people. (TNA)
