Thai Economy Better Than Predicted



Thai Economy Better Than Predicted 1 November 2020 (Readers 37)

Government Spokesperson Anucha Burapachaisri stated that Thailand's economic situation was better than predicted earlier, largely because of the Government's continued measures to cushion the economy. Mr. Anucha quoted a report by the Ministry of Finance that the Thai economy would contract by 7 percent in 2020, which is lower than the 7.2-8.2 percent forecast previously. He said that Thailand's ranking in the World Bank's Ease of Doing Business 2020 list had edged up six places, from 27th to 21st this year from 190 countries surveyed. In the ranking, Thailand's score also increased, representing the highest over the past six years. The increase, he said, showed that the Thai economic structure was adjusting to accommodate higher-value manufacturing, as a result of the Government's efforts to focus on the use of the digital system and to improve various rules and regulations that help enhance the country's competitiveness. Mr. Anucha said that Fitch Ratings recently affirmed Thailand's Long-Term Foreign-Currency Issuer Default Rating (IDR) at "BBB+" with a stable outlook. Thailand's ratings are supported by strong public and external finances, which have provided buffers to respond to the economic shock and market volatility associated with the coronavirus pandemic. Fitch expects Thailand's general government debt ratio to stabilize over the medium term in light of a record of prudent fiscal management, reinforced by the Fiscal Responsibility Act of 2018, though the trajectory remains sensitive to growth assumptions. It also expects Thailand's external finances to remain a core credit strength and buffer against external volatility.