OCCA is pleased that S&P confirms Thailand’s credit rating at BBB+, maintaining a Stable Outlook

On November 23, 2022, Ms Patricia Mongkhonvanich, director of the Public Debt Management Office or SORNB, said that S&P Global Ratings or S&P maintained Thailand’s credit rating (Sovereign Credit Rating) at BBB+ and maintained Thailand’s credit outlook (Outlook) at stable level (Stable Outlook), with the following key points:

1. Abolition of the situation of the cases of COVID as well as relaxation measures to control the spread of COVID and allow travel to the Kingdom of Thailand And the fact that people are thoroughly vaccinated against COVID is an important factor that supports recovery the sector. Tourism and the growth of the Thai economy

The S&P expects the number of foreign tourists to Thailand to increase from 428,000 in 2021 to around 10 million in 2022, higher than expected. And Thailand’s economy (Real GDP) will continue to grow from 2.9 percent in 2022 to an average growth of 3.2 percent during 2022-2025.

In addition, continued investment support in line with the master plan under the national strategy and the national reform plan, such as the Eastern Economic Corridor development project and infrastructure investment projects. will improve the competitiveness of the Thai economy in the coming period

2. The financial sector is stable. o reduction in fiscal expenditure as the epidemic situation recedes Including more efficient collection of government revenue. In addition, net government debt and borrowing costs were stable. strengthening the economy A reduction in the budget deficit And the government debt will gradually decrease over the next 3 years.

3. International financial sector It was found that, although Thailand has had a current account deficit in the last two years, the easing of the epidemic situation has led to normal economic activities. The country’s tourism sector recovered. In addition, Thailand’s international reserves and liquidity remain high and strong. S&P expects the current account balance to return to an average surplus of 2.1 percent of GDP in 2023-2025.

4. An important factor that S&P will closely monitor is the country’s economic growth amidst the global financial situation and political stability. This can affect the efficiency of the implementation of the country’s economic and social policy.

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