Fitch upgrades Thailand outlook to ‘stable’
Fitch Ratings has revised Thailand’s outlook to “stable” from “negative”, ‌citing increased confidence that government debt will broadly stabilise over the medium term and that political conditions will improve following the general elections held earlier this year.
Fitch Ratings has upgraded Thailand's credit outlook to "stable" from "negative", citing improved political stability and strong external finances. The agency believes government debt will stabilize in the medium term and that political conditions will improve after the recent general elections. The Thai economy has shown resilience despite challenges like higher energy costs and reduced tourism due to Middle East tensions.
The rating change also comes after a smooth political transition following the February elections, with Prime Minister Anutin Charnvirakul's coalition achieving a working majority. Fitch's evaluation is based on Thailand's strong external finances and ability to fund most of its debt domestically, with the government debt-to-GDP ratio currently at 59.3% and projected to stay below 63% by 2028.
The current account balance is expected to return to a surplus of 1.5% of GDP in 2027, following a brief deficit in 2026. This upgrade aligns with a similar move by Moody's in April, which also revised Thailand's outlook to "stable" due to reduced downside risks from US tariffs. The rating remains at a BBB+ investment grade.
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Also reported by 1 other outlet
- Fitch upgrades Thailand outlook to ‘stable’ bangkokpost.com
