Thailand maintains A- sovereign credit rating with stable outlook
Thailand's sovereign credit rating has been retained at “A-” with a “stable outlook” by Japan’s Rating and Investment Information Inc (R&I), according to a senior Thai official.
Patricia Mongkhonvanit, director-general of the Ministry of Finance’s Public Debt Management Office, said on Thursday that although Thailand’s economy was severely impacted by the Covid-19 pandemic, R&I expected a recovery, particularly in the tourism sector, which is a key engine driving the Thai economy.
Also, R&I expressed confidence in its latest evaluation of Thailand that the government could maintain financial stability while carefully dealing with the country’s public debt burden.
She said the financial affairs had been managed carefully and state funds had been gathered sufficiently despite the budget deficit and the high ratio of public debt to GDP — 61 per cent.
R&I expected Thailand to still suffer from a current account deficit this year due to decreased revenue from the tourism industry, higher transportation costs, a shortage of semiconductors, and China’s new round of Covid-19 lockdowns.
However, the current account deficit situation was expected to improve next year as the tourism sector was recovering and energy costs were declining.
Thailand’s external finance sector has remained strong due to the country's large foreign exchange reserves and high liquidity.
However, R&I voiced concern over the country’s political uncertainty that could affect its economic policies.