Economic danger signals as PM pushes expansionary goals

[webfact]

As economic growth projections for 2024 are cut, there are positive signs with rising consumer confidence and exports in January. Despite this, Prime Minister Srettha Thavisin (centre) is still doggedly pursuing his expansionary economic agenda. However, the growing threat from rising levels of debt within the financial system is on the radar of economic analysts. This may lead to a credit downgrade for Thailand in 2024.

 

Fears of a credit rating downgrade this year
by Joseph O' Connor

Thailand is at risk of a credit downgrade due to populist economic policies and a rising tide of debt. Economic stability may be threatened as private debt becomes increasingly hard to manage while at the same time, chronic structural woes are retarding growth in an uncertain geopolitical world.

Consumer confidence in Thailand continues to rise even as the economy’s overall growth is impaired by both geopolitical uncertainty and structural impacts. The country’s chronic household debt mountain is now not only retarding GDP growth, it has also begun to threaten the country’s economic stability. This week, news emerged that Fitch Ratings may be considering Thailand’s sovereign credit rating for a downgrade later in 2024. Certainly, there is rising anxiety about the expansionary outlook being pushed by the Pheu Thai-led government. It appears to ignore the need for overdue structural reforms and adjustments in pursuit of populist economics.

 

Thailand and Indonesia, two of Southeast Asia’s largest economies, are reported to be faced with the potential threat of credit rating downgrades.

 

Full story: Thai Examiner 2024-03-01

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Get our Daily Newsletter - Click HERE to subscribe

 

 

The news comes as the governments in both countries face challenges implementing populist policies aimed at appeasing middle and low-income nationals.

[ikke1959]

Maybe start with halving the free days.. They only cost money

[mfd101]

4 hours ago, webfact said:

It appears to ignore the need for overdue structural reforms and adjustments in pursuit of populist economics.

A nice summary of the (for many years) situation.

[hotchilli]

9 hours ago, webfact said:

Thailand is at risk of a credit downgrade due to populist economic policies and a rising tide of debt. Economic stability may be threatened as private debt becomes increasingly hard to manage while at the same time, chronic structural woes are retarding growth in an uncertain geopolitical world.

Consumer confidence is just a gullible populous believing what the governments telling them.

People and government are up to their necks in debt, but ploughing on with short term stimulus measures and trying to convince international players to invest in Thailands infrastructure projects so that it may look a great place to be.

Thailand was on a slide a decade or more ago, the Prayut regime destroyed any hope of recovery, now the massive sink hole is laid bare for all to see.

 

 

[Cake Monster]

Fitch, Moody's , S&P and others are starting to see through all the smoke, mirrors and BS that has been pumped out by the propaganda machine over the last few years

Early warning signs of a large correction about to take place me thinks