Thailand's economic recovery remains hampered by the resurgence of the COVID-19 pandemic, and political risks remain elevated. The nascent recovery in Thailand's service-oriented economy has been dented by the protracted pandemic both domestically and in neighboring countries. Political risks remain elevated, given the current political arrangement continues to come under the pressures of the coronavirus outbreak and the economic downturn. Fiscal stimulus will keep the budget in deficit and off-budget borrowing will continue to increase government debt. COVID-19-related stimulus is likely to widen deficits in fiscals 2020 and 2021, but fiscal performance is not expected to worsen structurally. Net government debt and interest payments will likely increase due to off-budget borrowings. External metrics should remain strong as the country maintains
