NationThailand-Sept 22
The International Monetary Fund (IMF) has advised Thailand to reinstate its former public debt-to-GDP ceiling of 60%, which was temporarily raised to 70% to handle pandemic-related spending. The recommendation aims to rebuild the country’s “fiscal space,” allowing it to better absorb future economic shocks after large-scale stimulus measures narrowed its financial buffers. With public debt currently at 64.49% of GDP, the IMF warns that a sustainable ceiling with a safety margin for future risks could be as low as 66%, making the current 70% limit risky. The IMF also expressed concern over off-budget borrowing and operations through state-owned enterprises, which reduce transparency and add to debt pressures. Thailand’s public debt remains elevated and is edging closer to the fiscal ceiling, posing growing risks to the economy despite staying just within the legal limit. According to the Public Debt Management Office (PDMO), public debt stood at 12.12 trillion baht as of July 31, 2025, equivalent to 64.49% of GDP. This is still below the statutory ceiling of 70%, but officials caution that the burden could rise further amid slower economic growth and weaker revenues. A government source noted that before the COVID-19 crisis, Thailand’s public debt-to-GDP ratio was under 40%. The pandemic forced the government to borrow 1.5 trillion baht while GDP contracted, pushing the ratio above 60% for the first time. Thailand’s steadily increasing public debt is beginning to strain the government’s medium-term fiscal framework, with the debt ratio expected to hit the ceiling sooner than previously projected. Read more at: https://www.nationthailand.com/blogs/business/economy/40055735
