Global credit rating company Moody’s Investors Service (Moody’s) has announced its latest credit rating for Thailand, maintaining it at Baa1 – the same score as the previous year, owing to the diversity of the kingdom’s economy as well as its robust financial sector.
Patricia Mongkhonvanit, director-general of the Public Debt Management Office (PDMO), said the rating reflects the size and diversity of the Thai economy and the effectiveness of its flexible macroeconomic policies.
She noted that another factor contributing to the score has been the government’s investment promotion measures under the Eastern Economic Corridor campaign, which is expected to further boost the economy over the next 2-3 years.
The director-general said Moody’s Baa1 rating is comparable to S&P’s BBB+ rating, adding that Thailand’s economy is expected to grow by 3.4% this year and 4.8% next year. In addition, confidence in the Thai economy is reflected in the latest Asian Development Bank (ADB) expecting the Thai economy to grow positively by 3% in 2022 and 4.5% in 2023 due to the beginning of Signs of a recovery in the Thai economy since the last 3 months of 2021 and the economy is expected to recover continuously in 2022, in line with the economic and social situation of Thailand that is at a level that is not worrying.
The past government measures such as we don’t leave each other, we win, increasing purchasing power through the state welfare card and a half each person, etc., helps heal those who have been affected by COVID-19 in the past very well. and contributed to the inequality situation Reflected by the GINI coefficient is 2020, it is 0.35, unchanged from pre-COVID-19 and decreasing compared to the past. As for household debt at the end of the 4th quarter of 2021, it was 14.58 trillion baht or accounted for 90.1% of GDP.
Compared to other countries at the same credit rating level, Thailand’s public financial sector remains robust with a slight increase in government debt-to-GDP ratio to 52-54%.