Aging Society and Skill Shortage Key Issues in Thailand’s Economy
Thailand will likely maintain continuity on infrastructure investment, after the country’s recent election results.
But its ageing society, moderate competitiveness and labour skills shortages remain key credit challenges.
Moody’s Investors Service has just released an FAQ on the Government of Thailand (Baa1 stable), analysing the outlook for policy, growth and structural reforms, against the backdrop of global trade tensions.
Moody’s report also examines the impact of Thailand’s elections in March 2019.
Moody’s expects policy continuity on the country’s 20-year national strategy, including investment in the flagship Eastern Economic Corridor. However, opposition to the ruling coalition’s slim majority in the lower house of parliament could delay the implementation of certain policies.
On the issue of how Thailand’s fiscal and external position will evolve, Moody’s says that Thailand will likely sustain its strong fiscal position, regardless of political developments, because of the country’s track record of adhering to fiscal rules, a factor that also supports Moody’s assessment of very high policy effectiveness.
Please read the continuation of “Aging Society and Skill Shortage Key Issues in Thailand’s Economy” on the Thailand Business News website.