S&P solid BBB+ rating a ‘good sign’

>>The government welcomes the latest decision by S&P Global Ratings (S&P) to maintain Thailand’s sovereign credit rating at BBB+ and rates the country’s economic outlook as “stable”, saying these outcomes are evidence of how effective the government’s economic stimulating policies have proven to be.

“This is good news that will improve the image of Thailand’s economy at the international level and attract investors from around the world to invest more in the country,” said deputy government spokeswoman Tipanan Sirichana.

Citing a report by the Public Debt Management Office (PDMO), she said S&P’s decision on the rating and assessment of Thailand’s sovereign credit and economic outlook was based on the results of the government’s management of the Covid-19 situation, including the country’s reopening.

The reopening has contributed to the recovery of the country’s economy, which relies heavily on tourism income, she said, adding that S&P expected the number of foreign tourists coming to Thailand this year to rise up to 10 million, compared with only 428,000 last year. As a result, Thailand’s real gross domestic product (GDP), which was 2.9% last year, is projected to grow by 3.2% on average from this year to 2025, she said.

The government’s support of investment under its national strategy and country reform master plan, including its flagship Eastern Economic Corridor (EEC) scheme and the infrastructure development projects, were also seen as key factors contributing to the competitive advantage of Thailand’s economy, she said.

Thailand’s financial stability has also improved following the fall in government expenditures associated with the handling of Covid-19, while at the same time the government has improved its efficiency in revenue collecting, she said.

The stronger economy has helped cut the budgetary deficit, which has led to a new projection that public debt will gradually fall over the next three years, she said.

“All in all, this latest perspective of S&P reflects continuing progress in the government’s efforts to revive the economy and lays a solid foundation for Thailand’s economy to make a leap of growth in the future,” she said.

Among the infrastructure development projects being implemented is a high-speed train project linking Suvarnabhumi, Don Mueang and U-Tapao airports; Laem Chabang Port’s phase 3 construction; and the third phase of the Map Ta Phut industrial port.