Thailand Economy
S&P optimistic about Thai economy in post-election period
Standard & Poor's Rating Services, one of the world's renowned credit rating agencies, has
expressed optimism about the Thai economy in the post-general election, saying the
December 23 poll is key to rejuvenating Thailand's sovereign credit fundamentals.
However, it warned that political divisions, if persisting after the election, would further
weaken the economy and undermine the country's sovereign credit fundamentals.
The agency said the Thai economy had been adversely affected by political and policy
ambiguities for almost two years, resulting in an investment slowdown in the country.
But at present, the political and policy uncertainties had eased, particularly following the
election, which could lead to a restoration of investor confidence.
In this scenario, Standard & Poor's maintained its stable outlook for Thailand's 'BBB+' foreign-
currency sovereign credit rating.
This could revive local demand to a prevent possible surge in unemployment when the global
economy experiences a slowdown.
Nonetheless, should political divisiveness continue unabated in the post-election period and
lead to another unconstitutional replacement of the government or violent social unrest, the
consequences to the economy would be greater and more damaging.
Such a development will definitely undermine Thailand's sovereign credit rating or the outlook
on the rating.
Source: MCOT
Posted: December 24, 2007
Politics, oil and US slowdown seen as three key risks ahead
Domestic politics, global oil prices and the prospect of a US recession are the main risk
factors for the Thai economy in 2008, according to economists and business leaders.
Speakers at a conference held yesterday by the International Institute for Trade and
Development expressed cautious optimism that growth would pick up in 2008 following the
Dec 23 election.
The Finance Ministry recently raised its 2008 growth forecast to above 5%, after third-quarter