Fitch ratings reveal Thailand’s economic recovery to boost corporate earnings in 2023

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Recovery of the domestic economy and alleviation of inflationary pressures are set to bolster the performance of corporations in Thailand this year, suggest analysts from Fitch Ratings during the 2023 Thailand Corporate Credit Outlook & Asean ESG conference, held recently in Bangkok.

 

Corporates at Fitch Ratings (Thailand)’s Lertchai Kochareonrattanakul, a senior director, indicated in his talk that a boost in local consumer demand coupled with a resurgence in activities related to tourism should foster continuous earnings growth for Fitch-rated firms in food and beverage, telecom, aviation, and hospitality verticals.

 

While earnings are pegged to enhance for the power and utility sectors, which previously felt the burn of high fuel expenses in 2022, expectations predict an ease in cost pressures. The recovery journey for petrochemical businesses may face hurdles due to softening international demand, escalated cost of raw materials and energy, and new supply that could potentially shrink petrochemical profit margins.

A prediction by Fitch anticipates oil and gas firms to experience a plateau in earnings from a previous peak but should still remain comparatively elevated.

 

By Alex Morgan

Photo Courtesy of Freepik

 

Full story: https://thethaiger.com/hot-news/economy/fitch-predicts-thailands-economic-recovery-to-boost-corporate-earnings-in-2023

 

-- © Copyright Thaiger 2023-06-27

 

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