S&P Affirms Thailand BBB+ Rating With Stable Outlook and 2% Growth

S&P Global Ratings affirmed Thailand’s BBB+ rating with a stable outlook, projecting 2% economic growth by 2026, driven by political stability, infrastructure investment, and tourism, despite a recent decline in arrivals.

Key Points

• Credit Rating Status: S&P Global Ratings has affirmed Thailand’s sovereign credit rating at BBB+ with a stable outlook, reflecting confidence in its economic fundamentals and policy direction.
• Economic Projections: The economy is projected to grow by 2.0% in 2026, averaging 2.3% annually until 2029. Per capita income is expected to rise from $8,000 in 2024 to $9,000 in 2026, aided by a stronger Thai baht.
• Fiscal Outlook: The fiscal deficit is projected at 3.2% of GDP for 2026 and 2027, with a current account surplus averaging 2.0% of GDP during the same period. Political stability and investments in infrastructure aim to bolster Thailand’s competitiveness and economic resilience.

S&P Global Ratings has affirmed Thailand’s sovereign credit rating at BBB+ and maintained a stable outlook, citing confidence in the country’s economic fundamentals, external financial position, and policy direction.

Public Debt Management Office (PDMO) Director-General Jindarat Viriyataveekul said S&P projects Thailand’s economy will grow by 2.0 percent in 2026 and average about 2.3 percent annually between 2026 and 2029. Income per capita is expected to increase from around 8,000 US dollars in 2024 to 9,000 dollars in 2026, partly due to the appreciation of the Thai baht.

The ratings agency said political stability is expected to support policy continuity and facilitate economic restructuring and strategic investment projects, including developments in the Eastern Economic Corridor and transportation infrastructure. State enterprise investment and public-private partnerships are also expected to improve Thailand’s competitiveness. Tourism remains a key driver of the economy despite a 2.4 percent year-on-year decline in international arrivals during the first quarter of 2026.

S&P projects Thailand’s fiscal deficit at about 3.2 percent of GDP in both 2026 and 2027 and expects the country’s current account surplus to average 2.0 percent of GDP in 2026 and 2.1 percent during 2026-2029. The PDMO said Thailand’s substantial international reserves, fiscal trajectory, income levels, and ability to absorb external shocks will continue to support its sovereign credit profile.

Source : S&P Affirms Thailand’s BBB+ Rating With Stable Outlook

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