Economy Thailand's Economic Strategy Earns Confidence from S&P Global Ratings

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The Thai government has welcomed the affirmation of its credit rating by S&P Global Ratings, which upheld Thailand's BBB+ rating with a stable outlook. This affirmation signals investor confidence in Thailand's economic management, according to a statement from government spokesman Jirayu Houngsub.

 

S&P's forecast predicts Thailand's GDP growth will be 2.3% in 2025 and 2.6% in 2026, rising to an average of 2.8% per year from 2025 to 2028. While external risks such as US trade tariffs pose challenges, S&P also notes an expected rise in per capita income from US$7,500 to US$8,100 this year, aided by a stronger baht.

 

The government's strategic investments, including the Eastern Economic Corridor and enhanced transport infrastructure, along with its support for public-private partnerships, were highlighted by S&P as crucial to enhancing Thailand's long-term competitiveness. The report also lauded Thailand's robust financial standing and substantial foreign exchange reserves as bolstering its economic stability.

 

Government spokesman Mr Jirayu reiterated the administration's commitment to transitioning the economy towards a more modernised and resilient model, emphasising fiscal discipline and fostering investment. Prime Minister Paetongtarn Shinawatra has tasked relevant agencies with tackling issues like household debt, income inequality, and rising living costs to stimulate economic growth.

 

The government’s economic stimulus plan is structured around four key "engines": boosting private consumption, increasing exports, and enhancing both public and private investments. Mr Jirayu underscored that these initiatives have been key in maintaining investor confidence, as reflected by S&P's rating.

 

In the previous December assessment, S&P maintained Thailand's BBB+ rating, anticipating growth driven by a recovery in the tourism sector and a series of stimulus measures despite the modest 1.9% growth in 2023. With current projections and strategic economic reforms, Thailand aims to prepare effectively for future global challenges.

 

  Adapted by ASEAN Now from Bangkok Post 2025-06-04