Thailand’s credit rating remains BBB+ with stable outlook: S&P
The global ratings agency projects 3.1% GDP growth next year, driven by stimulus measures and a rebound in the tourism industry
The S&P Global Ratings agency has maintained Thailand’s sovereign credit rating at BBB+ and marked its outlook as stable, Patchara Anuntasilpa, director general of the Public Debt Management Office, said on Wednesday.
The key details of the rating that are relevant to public debt management are as follows:
Economic growth projections
S&P forecast that Thailand’s economy would grow from 1.9% and 2.8% in 2023 and 2024, respectively, to 3.1% in 2025 thanks to economic stimulus measures and recovery of the tourism sector.
Real GDP growth is expected to average 3% between 2024 and 2027, while the budget deficit-to-GDP ratio is projected to average 3.3% in 2025-2026.
Investment and strategic projects
S&P expects the Thai government to continue prioritising investments aligned with the national strategy, including the Eastern Economic Corridor (EEC) and transportation infrastructure projects. Investments by state enterprises and public-private partnerships are expected to play a vital role in driving infrastructure development. These sustained investments will enhance Thailand’s economic competitiveness in the long term.
Public debt projections
Net general government debt-to-GDP is projected to rise by 3.3% in 2025, partly due to economic stimulus measures such as the 10,000-baht digital wallet scheme. However, S&P expects this measure to boost private-sector consumption.
External finance
Thailand’s external financial position remains robust, with a current account surplus of 1.4% of the GDP in 2023. This surplus is projected to average 2.3% from 2024 to 2027, primarily due to the recovery of exports.
Tourism recovery
The tourism sector is recovering fast and is expected to support economic growth over the next two years. In the first 10 months of this year, Thailand welcomed 28.8 million foreign arrivals, marking a 29.3% increase from the same period in the previous year. This trend is expected to continue, bolstered by the government’s visa exemption policies.
