6 June 2024

S&P Global Ratings (S&P) has retained Thailand’s sovereign credit rating for 2021 at BBB+, with a stable outlook, as it was last year, according to Government Spokesman Thanakorn Wangboonkongchana.

Regarding finance, although Thailand is maintaining a budget deficit this and next year, due to increased government spending to support various schemes to help people and businesses affected by COVID-19 pandemic and to aid economic recovery, S&P estimates Thailand’s GDP growth at 1.1% for the whole year and 3.6% annually for 2022-24, thanks to export increases and improvement in the tourism sector.

The global rating agency also forecast that Thailand’s economy will return to the pre-COVID level in the next two years, due to the government’s continuing support of investment under the 20-year national strategy and national reform plan, including the EEC mega projects and infrastructure development as well as the public-private partnership (PPP) projects.

S&P agreed that Thailand’s external finances remain strong, with a surplus current account, high foreign reserves and liquidity, as well as external liquidity, a moderate level of net general government debt and a record of credit-supportive monetary and fiscal policies.

Thanakorn said that S&P’s retention of Thailand’s credit rating and stable outlook reflects the government’s performance and management of all the measures are heading in the right direction, which will help in economic recovery and enhance confidence among both Thai and foreign entrepreneurs and investors.