Anutin Charnvirakul. (AP Photo/Sakchai Lalit)

 

Prime Minister Anutin Charnvirakul has pledged to fortify Thailand's economic confidence following a downgrade of its outlook to negative by Fitch Ratings. Speaking after a meeting with the Federation of Thai Capital Market Organisations (Fetco) at the Stock Exchange of Thailand, Anutin stressed the need for prudent economic measures to avoid further downgrades. He assured that all necessary steps would be taken to safeguard the nation’s credit rating.

 

This downgrading by Fitch raised concerns over Thailand’s public finances amid prevailing political uncertainty. Finance Minister Ekniti Nitithanprapas echoed the Prime Minister's sentiments, emphasising the importance of fiscal discipline. He stated that forthcoming economic policies aim for rapid recovery and focus on long-term growth, with public spending expected to ensure value for money.

 

Calling the negative outlook a wake-up call, Deputy Finance Minister Vorapak Tanyawong pointed out that Thailand's slow post-pandemic recovery has strained its finances. The country's sovereign ratings have remained above speculative grade, but the government’s response is crucial to avert further downgrades. An election, slated within four months as per opposition demands, may further stress policy implementation and budget drafting amid ongoing political negotiations.

 

Despite strains, Thailand’s economy is projected to grow by 1.8% to 2.3% this year, although challenges, such as US tariffs, are expected to slow growth in late 2025. The public debt has increased, necessitating a rise in the debt ceiling to 70% of GDP to accommodate essential fiscal support measures. Meanwhile, the revival of the Khon La Khrueng co-payment stimulus scheme is on track for October implementation, backed by existing budgets without fiscal deficit hikes.

 

Key government figures maintain that a strategic focus on transparency, governance, and fiscal responsibility will be pivotal. The aim remains to maintain the deficit below 3% of GDP, a target considered central to Thailand's fiscal health over the long term. Strengthening revenue-generating capabilities in state agencies without changing laws will also be prioritised to achieve economic stability.

 

Key Takeaways:

 

• PM Anutin committed to boosting economic confidence after Fitch's downgrade.
• Fiscal discipline and transparent governance are priorities for economic policies.
• Upcoming elections may cause short-term policy and budgeting uncertainties.

Related Stories:

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Thai PM Anutin Reveals 3.9 Billion Baht in Assets

 

 

  Adapted by ASEAN Now from Bangkok Post 2025-09-26

 

 

Short term will not be possible.. economic measures will take time even so the tourist industry which is declining already for years....The only solution is as soon as possible new elections and review many outdated laws such as the labor law and the alcohol sales/buy and vaping banning..Welcome tourism, but the tourist for this year probably have booked their holidays for now already..and in the business with the still too expensive THB will get new contract if the THB will weaken. Thailand is too expensive at the moment

10 minutes ago, ikke1959 said:

Short term will not be possible.. economic measures will take time even so the tourist industry which is declining already for years....The only solution is as soon as possible new elections and review many outdated laws such as the labor law and the alcohol sales/buy and vaping banning..Welcome tourism, but the tourist for this year probably have booked their holidays for now already..and in the business with the still too expensive THB will get new contract if the THB will weaken. Thailand is too expensive at the moment

True and it's looking tired never recovered we'll since covid and dope shops 

I hope that at some point in human history we can all agree that stimulus doesn't work.