Thailand Responds to Moody’s Outlook Downgrade

The Thai government has stated that Moody’s recent decision to downgrade Thailand’s economic outlook was premature. This statement was released on Wednesday, emphasizing that trade discussions with the United States are still ongoing.

According to the government, the nation’s economy continues to exhibit growth, and plans are underway to introduce economic stimulus measures aimed at further accelerating expansion during the latter half of the year.

On Tuesday, Moody’s adjusted Thailand’s rating outlook from stable to negative, expressing concerns that the country’s economic and fiscal situation might deteriorate.

Moody’s Ratings has also increased its GDP forecast for China in 2025, revising it to 4.2% from the previous estimate of 4.0%.

The ratings agency indicated that U.S. tariffs are anticipated to significantly impact global trade and economic advancement, which would consequently affect Thailand.

The agency also noted that considerable uncertainty remains regarding the potential imposition of additional tariffs by the U.S. on Thailand and other nations following the conclusion of a 90-day suspension period in July.

Moody’s asserted that this development intensifies Thailand’s already slow economic recovery following the pandemic and poses a risk of worsening the ongoing decline in the nation’s potential growth.