Thailand’s ratings balance its strong external finances and sound macroeconomic policy framework against weaker structural features, such as lower per capita income and World Bank governance scores, compared with its ‘BBB’ category peers, the report noted. While ongoing political uncertainty weighs on Thailand’s credit profile, this may be partially alleviated in the near term after the Thai parliament agrees on a new prime minister.
Fitch forecasts real Thai gross domestic (GDP) growth of 3.7% for this year and 3.8% for next year, up from 2.6% in 2022. Fitch expects economic prospects will be reinforced by a tourism revival from key source markets, with the inflow of foreign tourists rising to about 29 million this year, from 11.2 million last year, reaching nearly 75% of its pre-Covid crisis level.
Private consumption is predicted to improve as the labour market steadily…
