Thailand Ranked as a Top Market Pick for 2021

A Bloomberg study puts Thailand in the spotlight for an emerging market that could beat expectations in the year 2021. Along with Russia, Thailand is extremely well-placed for a bright future in 2021.

The recent Bloomberg study focused on 17 developing markets and gauging their potential in the upcoming year 2021. The study was based on 11 indicators of economic and financial performance. Thailand topped the list of the 17 developing markets based on its solid reserves and high potential for portfolio inflows. Russia placed second after Thailand due to external accounts, a strong fiscal profile, and an undervalued ruble.

The good news for Thailand, according to the Bloomberg study, is that the Kingdom is poised to recoup economic losses from the Covid-19 pandemic. Due to monetary and fiscal stimulus injected into the economy in order to fight the pandemic, developing nations with assets are poised for a winning year. Globally, an economic recovery is on its way. The Federal Reserve is poised to keep interest rates low, which means that in 2021 good valuations and attractive yields should lure foreign buyers to Thailand

That means you can make a plan to observe the future, moving out for some time, and then decide to move back or stay away, instead of going straight to a land that you are not sure you will blend in properly.

The scorecard metrics from Bloomberg consisted of the following:

Covid Growth Healing

A lot of what comes next depends on the global vaccination distribution, and there is a worry that poorer, less-developed countries will be left behind. It’s no secret that emerging markets have suffered in the Covid-19 era, especially Thailand as the country mostly depends on tourism. However, Bloomberg shows that analysts are predicting high rates of growth for those hardest hit by the pandemic in 2020, including Asia.

“The depth of the pandemic recession and the speed of recovery from it differ widely across emerging markets. Countries that manage to contain the outbreak, introduce large stimulus, have low exposure to the hardest-sectors and aren’t reliant on foreign capital will fare better.

China and Turkey are already at their pre-virus peak, although the latter relied on an unsustainable credit boom. India should get there by 1Q21. Chile and South Korea won’t be far behind—we expect them to catch up mid-2021.”

-Ziad Daoud, chief emerging markets economist

Lockdown Relief

Lockdown indexes from Goldman Sachs Group Inc. state that once the pandemic is truly under control, developing countries stand to gain a lot in terms of activity catchup. This is definitely true for Thailand, as it is one of the most revered tourist destinations in the world. We firmly believe that once the pandemic is at bay, people will be returning to Thailand, particularly Phuket, in droves.

Other factors such as structural vulnerabilities and favorable valuations are a part of the Bloomberg survey. However, it is clearly highlighted in this survey that countries with developing markets are due to have a lot of potential in 2021.

Interested in learning more about favorable investment opportunities in Thailand in 2021? Reach out to us for an initial consultation.