Hanoi (VNA) – Moody's Ratings has ranked Thailand among the world’s most resilient emerging markets, saying the country has strengthened its ability to withstand global economic shocks over the past five years.
In its latest report, Moody’s said several major emerging economies have weathered recent global disruptions without sharp increases in risk premiums or losing access to financial markets, unlike during previous crises.
Thailand was listed among five leading emerging-market economies, alongside Malaysia, India, Indonesia and Mexico. These economies maintained resilience despite the impacts of the COVID-19 pandemic, the global monetary tightening cycle, banking-sector pressures and trade tensions.
According to the report, many emerging economies continued to face volatility in bond yields and exchange rates in line with global interest-rate movements. However, credit risk spreads did not widen as sharply as in previous crises, reflecting continued market confidence in their policy frameworks and macroeconomic management.
Moody’s grouped emerging economies into three categories: highly resilient, conditionally resilient and vulnerable. Thailand, India, Malaysia, Indonesia and Mexico were placed in the strongest-performing group.
The rating agency attributed their performance to early policy reforms, particularly in inflation-targeting frameworks, exchange-rate flexibility, debt management and the development of local-currency financial markets. These factors helped absorb shocks through market mechanisms without triggering credit or funding crises.
Moody’s cited Thailand and India as examples of economies with “structural resilience”, describing them as among the best prepared to cope with future global shocks.
Thailand’s resilience was supported by a strong long-term balance-of-payments position and low external debt, while India benefited from deep domestic financial markets and large reserves.
However, Moody’s also cautioned that Thailand’s rising debt burden could gradually weaken its crisis resilience over the longer term, while India’s relatively high debt level and weak fiscal position may limit its ability to respond to prolonged shocks./.
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