S&P Affirms Thailand's Credit Rating at BBB+ with Stable Outlook
Thailand's economy projected to grow as tourism recovers and government investment strategies continue.
S&P Global Ratings has affirmed Thailand's credit rating at BBB+ and maintained a Stable Outlook, reflecting confidence in the resilience of the Thai economy, according to the Director-General of the Public Debt Management Office (PDMO), Patchara Anuntasirpa.
The credit rating agency forecasts the country's economy to grow by 2.3% in 2025 and 2.6% in 2026.
The average real GDP growth for Thailand is expected to be around 2.8% from 2025 to 2028.
S&P anticipates an increase in income per capita from US$7,500 to US$8,100 by 2025, partially due to a strengthening Thai Baht.
S&P characterizes the tourism sector as in a robust recovery, projecting it will be a key driver of economic growth in the coming years.
In 2024, the country is expected to host approximately 35.5 million foreign visitors, marking a 26% increase compared to the previous year.
Although growth may moderate to around 1.9% year-on-year in early 2025, government initiatives, including extended visa exemption periods, are expected to sustain tourist inflow.
Investment remains a strategic focus for the Thai government, particularly in the Eastern Economic Corridor (EEC) and transport infrastructure projects.
The role of state-owned enterprises and Public-Private Partnerships (PPPs) is highlighted as essential in capital expenditure to enhance long-term competitiveness.
The agency predicts that the Net General Government Debt to GDP ratio will rise to 3.3% in 2025, attributing this to the government's ongoing deficit fiscal policy aimed at bolstering economic recovery.
Furthermore, around 157 billion baht from the Digital Wallet scheme may be allocated to potential investment projects aimed at stimulating the economy amidst global trade uncertainties.
Thailand’s current account surplus underpins its strong external finance position, with S&P projecting an average current account surplus of 1.6% from 2025 to 2028, supported by substantial international reserves.
S&P intends to closely monitor Thailand’s economic performance in relation to peer countries, trends in per capita income, and the pathway to achieving fiscal balance.
Political stability within the country is also a significant factor, affecting the predictability and continuity of economic policymaking.
Patchara Anuntasirpa stated that the PDMO will continue to coordinate closely with credit rating agencies, providing accurate and comprehensive information to maintain investor confidence.
The credit rating agency forecasts the country's economy to grow by 2.3% in 2025 and 2.6% in 2026.
The average real GDP growth for Thailand is expected to be around 2.8% from 2025 to 2028.
S&P anticipates an increase in income per capita from US$7,500 to US$8,100 by 2025, partially due to a strengthening Thai Baht.
S&P characterizes the tourism sector as in a robust recovery, projecting it will be a key driver of economic growth in the coming years.
In 2024, the country is expected to host approximately 35.5 million foreign visitors, marking a 26% increase compared to the previous year.
Although growth may moderate to around 1.9% year-on-year in early 2025, government initiatives, including extended visa exemption periods, are expected to sustain tourist inflow.
Investment remains a strategic focus for the Thai government, particularly in the Eastern Economic Corridor (EEC) and transport infrastructure projects.
The role of state-owned enterprises and Public-Private Partnerships (PPPs) is highlighted as essential in capital expenditure to enhance long-term competitiveness.
The agency predicts that the Net General Government Debt to GDP ratio will rise to 3.3% in 2025, attributing this to the government's ongoing deficit fiscal policy aimed at bolstering economic recovery.
Furthermore, around 157 billion baht from the Digital Wallet scheme may be allocated to potential investment projects aimed at stimulating the economy amidst global trade uncertainties.
Thailand’s current account surplus underpins its strong external finance position, with S&P projecting an average current account surplus of 1.6% from 2025 to 2028, supported by substantial international reserves.
S&P intends to closely monitor Thailand’s economic performance in relation to peer countries, trends in per capita income, and the pathway to achieving fiscal balance.
Political stability within the country is also a significant factor, affecting the predictability and continuity of economic policymaking.
Patchara Anuntasirpa stated that the PDMO will continue to coordinate closely with credit rating agencies, providing accurate and comprehensive information to maintain investor confidence.
