Japan’s R&I retains Thailand’s sovereign credit rating of ‘A-‘

The Office’s spokeswoman Jindarat Viriyataveekul said on Thursday that R&I expected that the Thai government would maintain sound fiscal management, paying appropriate attention to the debt burden under the Fiscal Responsibility Act.

Jindarat summarised R&I’s analysis of the Thai economy in 2024 as driven by private consumption and tourism, with the main supporting factor being direct foreign investment, especially in the electrical, electronic and automotive industries. The export sector, however, would continue to slow, reflecting the sluggish international economy.

R&I remarked that the government has proactive measures to support investment in the Eastern Economic Corridor (EEC) and infrastructure projects that would help attract foreign investors and tourists.

R&I also estimated that Thailand’s current account balance would return to a surplus in 2023, while the foreign exchange reserve will stand at a high level. The institute is however keeping an eye on Thailand’s "middle income trap" where emerging economies gets stuck at a certain income level.

Jindarat quoted the R&I report as concluding, “While there is room for fiscal expansion, the declining birthrate and increasing ageing population could add growing pressure towards larger public spending in the long term. Eyes are on the government structural policy responses to secure fiscal stabilisation including expanding the tax base.”