Thailand, ASEAN Debt Under Scrutiny as IMF Flags Energy Shock Risk Across Asia-Pacific
The IMF is scrutinizing Thailand's public debt and advising ASEAN nations to prioritize targeted fiscal support amid rising energy costs. Thailand is identified as vulnerable to an energy price shock due to its high net oil and gas imports.
The International Monetary Fund (IMF) has raised concerns over Thailand's public debt, which stands at around 66% of GDP, and the broader ASEAN region's fiscal health amid an energy crisis. Thailand is particularly vulnerable due to its high oil and gas imports, around 8% of GDP. The IMF advises ASEAN nations to implement targeted fiscal support measures and avoid costly fuel subsidies. For Thailand, the IMF recommends pausing further interest rate cuts to preserve policy space. The region's growth momentum is being tested by the energy shock, with the IMF warning against broad-based fuel subsidies and price caps. ASEAN central banks should look through the initial impact of energy price rises if inflation expectations remain stable.
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