BANGKOK (Reuters) -Thailand’s credit rating is not a concern due to very low levels of foreign debt, a deputy finance minister said on Friday, adding that the government is now trying to boost the economy to bring “the light at the end of the tunnel”.
The government will accelerate economic stimulus measures to boost liquidity, reduce debt, and address energy supply issues, deputy minister Vorapak Tanyawong also told reporters.
Prime Minister Anutin Charnvirakul’s government will deliver its policy statement on September 29 and 30, marking the start of the new administration.
Efforts are also being made to lay the foundations for fiscal consolidation, including revenue collection, expenditures, and debt management, ensuring discipline, sustainability, and stability, Vorapak said, following Fitch’s outlook cut.
Fitch on Wednesday revised Thailand’s outlook to “negative” from “stable”, citing increasing risks to its public finances amid ongoing political uncertainty.
The adjustment stems from political instability and a steady decline in fiscal health, Vorapak said.
“However, the credit rating is not a concern yet because we borrow very little from abroad,” he said.
Vorapak also said there was no current proposal to raise the 7% rate of value added tax.
Thailand – Southeast Asia’s second largest economy – has been struggling with high household debt, weak consumption, the impact of U.S. tariffs and, in recent weeks, a soaring baht, with the currency reaching a four-year high against the dollar.
On Friday, Commerce Minister Suphajee Suthumpun said the strong baht is impacting the country’s exporters, and economic agencies are looking to address the issue.
After lagging regional peers with growth of 2.5% in 2024, the economy is projected to expand by 1.8% to 2.3% this year, according to the state planning agency, with a slowdown expected in the second half of 2025 because of U.S. tariffs.
(Reporting by Kitiphong Thaichareon and Thanadech Thaichareon; Writing by Orathai Sriring; Editing by David Stanway)
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