Fitch Ratings’ Global Head of Sovereigns Managing Director, Mr James McCormack, said that the stable sovereign Outlook on Thailand’s ‘BBB+’ was upgraded to Positive during the second half of 2019. This was mainly due to investors’ growing confidence in the Thai economy, which according to them, is immune to global risks.
According to Mr McCormack, the country’s economic growth this 2019 would be at 3 per cent. The economy grew slightly slower than the projected 3.2 per cent. Thailand’s economy is slow on the uptake in view of a volatile global economy. Nevertheless, receiving a positive credit outlook by Fitch Ratings is such an honour. This year, only 12 countries were marked positive by the prestigious credit rating company.
Trade tensions may have presented challenges, but Thailand’s economy will continue to move in a positive direction. During their yearly global risk conference in Bangkok, analysts from Fitch Ratings said that the Thai banking sector faces less external risks compared to other Fitch-rated banks in Asia. One such risks could be a possible slowdown of investment money from China.
While many countries went through a rating decline, Fitch saw the Thai economy’s potential. Its fiscal status, evidenced by a strong baht, is not likely to waver anytime soon.Thailand currently has a 40-42 per cent debt-to-GDP ratio. Despite government plans to pursue new infrastructure projects via new loans, they have so far remained within the 60 per cent debt ceiling. Investments of this nature help increase the country’s competitive edge. Uttama Savanayana, Thailand’s Finance Minister, said that Thailand’s positive rating is good news. That a renowned credit agency like Fitch Ratings could place confidence in the country’s economic potential. Expect investor confidence to rise – provided the government focuses on implementing its 20-year national strategy.