Thailand increases borrowing for fiscal stimulus, risking fiscal consolidation efforts, as rated by S&P and Fitch.
Thailand's move to increase borrowing to stimulate its economy risks setting back fiscal consolidation efforts, according to ratings agencies S&P and Fitch. The government plans to increase the deficit for the next fiscal year to 4.42% of GDP, with additional borrowing of $4.2bn to fund stimulus measures. This decision comes after the central bank denied the Prime Minister's repeated calls to cut interest rates. The government's efforts to restore a more supportive fiscal stance may result in a widening budget gap.
April 05, 2024
6 Articles