Thailand's economy affected by global headwinds: Fitch Ratings
Fitch Ratings has warned that Thailand's economic recovery could be constrained by a global slowdown while the new coalition government's economic stimulus policies could lead to higher government debt.
Economic recovery in Thailand could be constrained by a global slowdown, according to Fitch Ratings. (Photo: AFP/VNA)
Bangkok (VNA) – Fitch Ratings has warned that Thailand's economic recovery could be constrained by a global slowdownwhile the new coalition government's economic stimulus policies could lead tohigher government debt.
The credit rating agency said Thailand is notimmune to the weaker global backdrop, with merchandise exports contracting yearon year since October 2022 and tourist arrivals, while rising, remaining wellbelow pre-pandemic levels.
The recent formation of the multi-party coalition government couldencourage consensus-led policymaking, but wide-ranging views within thecoalition will complicate the process and may delay the budget for fiscal 2024,which begins on October 1, 2023, Fitch said.
It noted that fiscal consolidation is likely to beconstrained by parties' campaign pledges to raise social spending. This wouldsupport growth in the short term, though it could put upward pressure ongovernment debt relative to GDP unless the pick-up in growth is sustained.
Fitch expects the environment in Thailand over thenext two years to become more conducive for banks to grow profitably andgenerate capital despite the risk of further impairments on restructured loans. The agency held that major banks have an appetite to seek opportunities for growthdomestically in non-bank segments, as well as abroad./.
Thailand’s economy can grow as forecast in 2023, helped by public consumption and investment after the formation of the new government, the country's Deputy Minister of Finance Krisada Chinavicharana said on September 8.
Thailand’s new Prime Minister Srettha Thavisin vowed to act quickly to relieve the country's economic problems in his four-year term in his inaugural speech to the parliament on September 11.
Thai Prime Minister Srettha Thavisin said on September 12 that his government will ask employers to raise the minimum daily wage to 400 THB (11.4 USD) as soon as possible.
Thai Prime Minister Srettha Thavisin is now focusing on boosting the economy of Thailand’s northeastern region, with plans to host his first mobile cabinet meeting in Nong Bua Lamphu province in November.
The handover ceremony was held at the Malaysian Embassy headquarters in Mexico City on August 8, with the presence of heads of diplomatic missions from ASEAN member states in Mexico.
Total trade between Indonesia and New Zealand in the first half of 2025 reached 963.23 million USD, an increase of 21.56% compared to 792.39 million USD in the same period last year. Of this amount, Indonesia's exports to New Zealand totaled 374.89 million USD, while imports 588.35 million USD
Malaysia, as ASEAN 2025 Chair, marked the bloc’s 58th founding anniversary on August 8 with a vibrant celebration in Cyberjaya, blending an official ceremony with a colorful cultural festival.
Vietnam plays an important role in Southeast Asia’s economic growth and is a key partner of her country in realising the shared vision of a peaceful, stable, and prosperous region, said Robyn Mudie, First Assistant Secretary of Office of Southeast Asia (OSA) – Southeast Asia Regional and Mainland Division at Australia’s Department of Foreign Affairs and Trade (DFAT).
The 2025 ASEAN Business Community Development (ABCD) Forum, themed “Empowering ASEAN's Next Leap: Digital, Sustainable & Entrepreneurial Transformation” brought together ministers, CEOs, and top industry experts to discuss key regional economic priorities.
The DES Ministry will seek cooperation from social media platforms to prevent the spread of fake news and monitor accounts related to such activities, he told reporters after chairing a meeting of the newly established Anti-Fake News Centre (AFNC).
The Joint Standing Committee on Commerce, Industry and Banking identified the US tariff reduction as a significant driver behind the improved economic outlook for Thailand.
Financial institutions and financial technology (fintech) players are intensifying their focus on expanding across the Association of Southeast Asian Nations (ASEAN), adopting tailored strategies to strengthen their presence in the region’s digital financial services landscape.
Featuring a permanent exhibition area, the ASEAN Hall will function both as a cultural showcase and as a dynamic venue for ASEAN-related events and programmes. Its inauguration on ASEAN Day added symbolic weight, marking a fresh milestone in ASEAN–RoK relations.
Thailand’s Ministry of Commerce and rice exporters are devising strategic plans to boost rice exports amid global market fluctuations, focusing on key markets and adjusting output.
The focus of the upcoming ASEAN Summit in October will be on strengthening economic relations through intra-regional trade and investment, as well as regional initiatives on energy networks and connectivity.
Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
The Indonesian Government is determined to seize opportunities to enhance the competitiveness of national agricultural products, an official has said, adding that it always strives to promote exports at the highest possible level, based on a mutually beneficial foundation.
Finance Minister Pichai Chunhavajira has outlined a six-point strategy to promote innovation, support small and medium-sized enterprises (SMEs), and push for Thailand's removal from the US Trade Representative (USTR)’s special 301 Watch List regarding intellectual property rights protection among trading partners.
Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.
The consumer index of the University of the Thai Chamber of Commerce (UTCC), fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.
Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
The 30-storey tower crumbled seconds after a 7.7-magnitude earthquake hit neighbouring Myanmar on March 28. The partially built high-rise, meant to house the State Audit Office (SAO), was the only building in Thailand to collapse, killing 89 people on the site, mostly construction workers.
Indonesia’s waste generation is projected to exceed 50 million tonnes in 2025. Of the total, more than 20 million tonnes could potentially enter the ocean through rivers, coastal areas, small islands, ports, and marine activities, and thereby, pose a risk to coastal ecosystems and marine biota.
Economic recovery in Thailand could be constrained by a global slowdown, according to Fitch Ratings. (Photo: AFP/VNA) 
