S&P Global Ratings has affirmed Thailand’s sovereign credit rating at “BBB+” with a stable outlook, citing confidence in the country’s economic fundamentals and the government’s policy direction.

According to the Thai Public Debt Management Office, S&P forecasts Thailand’s economy to grow at 2 percent in 2026, reflecting the impact of volatility in global energy markets that has weighed on domestic economic activity.

The Thai economy is, however, expected to recover from 2027 onward, with growth projected to average 2.3 percent over the 2026-2029 period, the rating agency said.

S&P said the new government’s political stability supports policy continuity, facilitating the advancement of economic restructuring and investment projects under the long-term national strategy.

The agency noted that investment by state-owned enterprises and public-private partnerships would play a key role in enhancing the Southeast Asian country’s competitiveness going forward.

At the same time, the tourism sector remains a critical driver of the Thai economy, with S&P anticipating that government initiatives would further reinforce the industry and stimulate high-value domestic travel.