Ratings agency Fitch on Wednesday revised Thailand’s outlook to “negative” from “stable”, citing increasing risks to public finances amid ongoing political uncertainty.
Thailand’s Constitutional Court recently removed Prime Minister Paetongtarn Shinawatra from office over a leaked telephone call with former Cambodian leader Hun Sen, which was seen as a violation of ethics amidst heightened border tensions.
Anutin Charnvirakul took over as prime minister earlier this month after striking a deal with the opposition People’s Party to hold general elections within four months in exchange for its support.
Fitch said political uncertainty could drive short-term spending and deepen policy unpredictability in Thailand, while delayed tourism recovery and high household debts are adding to increasing fiscal risks.
Thailand’s tourism ministry said that foreign tourist arrivals from January 1 to September 21 fell 7.44% from the same period a year earlier.
A sharp drop in Chinese visitors, in particular, compared to 2019, raises concerns about the pace of Thailand’s tourism recovery, according to Fitch.
Fitch affirmed Thailand’s rating at ‘BBB+’ on the back of strong capacity to finance its government debt. — Reuters
