Thailand’s credit rating outlook turned negative due to political instability and rising debt, despite maintaining investment-grade status.

Thailand’s credit outlook has been downgraded to negative by Fitch due to political instability and growing risks to public finances, though its investment-grade rating remains at BBB+. The government, led by Prime Minister Anutin Charnvirakul, is prioritizing fiscal discipline and transparent spending to rebuild confidence, with plans for new economic stimulus measures by October. Despite a projected 1.8% to 2.3% growth in 2025, recovery has lagged regional peers, and public debt nears a 70% GDP ceiling. A planned election within four months adds near-term uncertainty, while the economy faces challenges from slowing global demand, high household debt, and a tourism sector still recovering. The government aims to keep the budget deficit below 3% and revive a co-payment stimulus using existing funds.