Thailand’s credit profile is supported by its fiscal strength arising from low levels of government debt, low debt servicing costs and favourable government debt structure. Its external position, underpinned by a favourable current account balance and sufficient foreign exchange reserves, further strengthens the credit assessment. Tourism is an important sector for the economy, adding to the strength of the external sector, but that also exposes Thailand to global growth concerns. The monetary policy has been effective as reflected in the low and stable level of inflation.

However, the persistent structural challenges such as the ageing population and low productivity are constraints for its medium-term growth prospects. Recent political disruptions, including a change in leadership in Thailand, have created uncertainty about the continuity of policies announced by the previous government, such as the Digital Wallet program.