Rating of Thailand Maintained at BBB+ by S&P, Outlook Remains Stable
Thailand's Economy: S&P Maintains Positive Outlook Amid External Risks
Great news for Thailand's economy! S&P Global Ratings has affirmed its credit rating at BBB+, with a stable outlook, demonstrating confidence in the nation's economic fundamentals. The affirmation comes as a result of a robust tourism recovery, sustained government investment, and a projected growth of 2.3% in 2025 and 2.6% in 2026.
According to Patchara Anuntasilpa, Director-General of the Public Debt Management Office (PDMO), S&P highlights the revitalized tourism sector as a crucial driving force for economic growth – with 35.5 million foreign visitors in 2024, a significant 26% increase from the previous year.
The agency also anticipates the average Real GDP Growth for Thailand between 2025 and 2028 to be around 2.8%, with income per capita projected to increase from US$7,500 to US$8,100 in 2025.
However, external risks – particularly uncertainties stemming from the United States’ retaliatory tariff policies – are factors that will require close attention. The tourism sector remains at the forefront of these concerns, as the industry's growth could be impacted if global trade tensions escalate.
The PDMO will continue to collaborate with credit rating agencies to provide up-to-date information and maintain investor confidence. By working closely with these organizations, Thailand aims to ensure that both domestic and international investors have access to accurate and comprehensive data on the country's economic prospects.
Tags* S&P Global Ratings* Thailand* Thai economy* Stable outlook* External risks
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Enrichment Data- Tourism Sector Recovery: The robust recovery of the tourism sector, with 35.5 million foreign visitors in 2024 (a 26% increase from the previous year), is highlighted as a crucial driver of economic growth. Government initiatives such as extended visa exemptions are expected to sustain this momentum.- Strategic Investments: Significant government and public-private investments in projects like the Eastern Economic Corridor and transport infrastructure are seen as foundational for long-term competitiveness and growth.- External and Internal Risks: S&P is closely monitoring external risks, especially uncertainties stemming from U.S. retaliatory tariff policies, which could negatively impact Thailand's export-driven economy. Broader global uncertainties, including potential trade wars and fluctuating demand, are also noted as risks that require vigilance. In addition, domestic banks must carefully manage financial sector pressures such as worsening global conditions and rising bad debts to prevent dampening credit growth and consumer demand.
- The affirmation of Thailand's credit rating by S&P Global Ratings comes after a positive evaluation of the tourism sector's revitalization, which is seen as a significant driver for the nation's economic growth.
- The recovery of the tourism sector, with an expected 35.5 million foreign visitors in 2024, is attributed to sustained government investments and initiatives like extended visa exemptions.
- Despite the positive outlook, external risks, particularly uncertainties from U.S. retaliatory tariff policies, could potentially impact the tourism industry and, by extension, Thailand's economy.
- Infrastructure projects like the Eastern Economic Corridor and strategic investments in transport infrastructure are crucial for ensuring long-term competitiveness and economic growth in Thailand.
- To maintain investor confidence and provide accurate data, the Public Debt Management Office (PDMO) will continue to collaborate with credit rating agencies like S&P Global Ratings, keeping them informed of Thailand's economic prospects on an ongoing basis.
