Thailand’s government will soon review additional economic stimulus measures in an effort to address growing risks highlighted by Fitch Ratings, the country’s finance minister announced on Thursday.
Fitch this week revised its outlook on Thailand from “stable” to “negative,” citing persistent political volatility as a mounting threat to the nation’s public finances. Finance Minister Ekniti Nitithanprapas stressed the importance of fiscal discipline in the wake of the agency’s warning, telling reporters, “We must take Fitch’s warning seriously,” and that “Fiscal discipline is critical.”
The finance chief indicated that a new stimulus package would be presented to the cabinet as early as October, with the government aiming to secure a sustainable long-term GDP growth rate of 3%.
Ekniti also noted that further details about the government’s economic strategy will be released soon, and underscored that Prime Minister Anutin Charnvirakul’s key directive is to promote a swift economic recovery while maintaining a long-term perspective.
Earlier on Thursday, Prime Minister Anutin pledged to restore investor confidence after the Fitch downgrade, stating his commitment to shoring up Thailand’s economic prospects.
The move follows a similar outlook downgrade earlier this year by Moody’s, which shifted its stance to Negative while keeping Thailand’s credit rating unchanged at Baa1 at the end of April.
Fitch’s decision is attributed primarily to increasing risks to Thailand’s fiscal stability, persistent political uncertainties impacting policy predictability, investor confidence, and fiscal discipline, as well as mounting fiscal pressures arising from expansive economic stimulus measures amidst subdued economic growth.
