Political and fiscal uncertainty looks set to remain a near-term drag on Thailand’s credit profile after the recent general election, even as the country continues to benefit from robust external finances, a strong macroeconomic policy framework and economic recovery as tourists return, says Fitch Ratings.
Key Takeaways
- Political and fiscal uncertainty following Thailand’s recent general election may hinder the country’s credit profile in the near-term.
- The formation of a coalition government could be delayed, potentially impacting the passing of the fiscal year 2024 budget.
- Fiscal consolidation prospects may be challenged due to the potential need for significant additional expenditure as advocated by major parties during the campaign.
Thailand held a general election on 14 May 2023, but the official results are still pending. The preliminary figures suggest that the opposition…
