Thailand's GDP is expected to grow at 3.2% in 2022 and 4.5% in 2023, which will be facilitated by the sustainable recovery and development of tourism. Despite higher inflation and a slowdown in global economic growth, the forecasts are very optimistic.
Thailand's GDP rating reflects the country's stable external financial position and a strong macroeconomic policy framework, which should help the country cope with potential volatility in the face of tightening global credit conditions.
Parson Singha, Senior Director of Financial Institutions at Fitch Ratings Thailand, commented that bank revenues are improving, although the growth potential is limited as economic activity remains low compared to the pre-pandemic level. Fitch expects an increase in impaired loans during the year as regulatory easing eases, although a high level of loan loss coverage should reduce the need for additional reserves.