By Orathai Sriring and Thanadech Staporncharnchai
BANGKOK (Reuters) -Thailand's new government said on Thursday that it would move quickly to bolster a stuttering economy and maintain fiscal discipline, describing an outlook revision by ratings agency Fitch as a warning.
Fitch on Wednesday revised Thailand's outlook to "negative" from "stable", citing increasing risks to its public finances amid ongoing political uncertainty.
"The outlook downgrade stems from past factors," Prime Minister Anutin Charnvirakul
told reporters, in his first public comments after the revision.
"Now we are aware of this and will work to build confidence so that they will revise it upward."
Marking the start of the new administration, Anutin's government will table its policy statement to parliament on September 29 and 30, a ruling party official said.
In their address to lawmakers, Anutin and his cabinet will lay out plans to lower the cost of living, tackle household debt, stabilise agricultural prices and support small businesses, according to a document seen by Reuters.
The incoming government will also outline measures to support the vital tourism sector, prioritise free trade agreements and find ways to resolve the festering border conflict with Cambodia, the document showed.
'FITCH'S WARNING'
Thailand - Southeast Asia's second largest economy - has been struggling with high household debt, weak consumption, the impact of U.S. tariffs and, in recent weeks, a soaring baht.
After lagging regional peers with 2.5% growth in 2024, the economy is projected to expand by 1.8% to 2.3% this year, according to the state planning agency, with a slowdown expected in the second half of 2025 because of U.S. tariffs.
Anutin's government has a limited window to implement its measures, with the premier late on Wednesday announcing that he planned to dissolve parliament by the end of January, leading to a general election in March or early April.
This is in line with an agreement that his ruling Bhumjaithai party made with the largest grouping in parliament - the opposition People's Party - to ensure Anutin's election as the prime minister in early September.
Despite the possibility of a short term in government, Finance Minister Ekniti Nitithanprapas said maintaining fiscal discipline was crucial.
"We must take Fitch's warning seriously," he said.
The cabinet will consider a new economic stimulus scheme as early as October, and is aiming for a long-term GDP growth rate of 3%, he told reporters.
"The economic policy will be announced soon, but the core directive from the Prime Minister is to ensure rapid recovery and long-term focus," he said.
(Reporting by Orathai Sriring, Thanadech Staporncharnchai and Panarat Thepgumpanat; Writing by Devjyot Ghoshal; Editing by David Stanway and Ed Osmond)
