These strengths are balanced by weaker structural features relative to peers, such as lower income per capita and World Bank governance indicators.

Political uncertainty around the anticipated transition back to civilian rule also constrains the rating, Fitch said.

Fitch expects the current-account surplus to remain large on the back of strong goods and tourism services exports, but to narrow modestly to 8.1 per cent of GDP by 2019, from 10.6 per cent in 2017, as improved domestic demand spurs import growth.

Sustained current-account surpluses and higher capital inflows over the past several years have driven an appreciation of the Thai baht and facilitated the accumulation of foreign reserves to US$213 billion in May from $156 billion in 2015.

The country’s net external creditor position has continued to improve, reaching 46.3 per cent of GDP in 2017, according to Fitch estimates, substantially higher than the BBB and A medians.

GDP growth in Thailand accelerated to 3.9 per cent in 2017, from 3.3 per cent in 2016, bolstered by favourable global economic conditions and a nascent pickup in domestic investment.

Exports grew at their fastest pace since 2012, at 5.5 per cent. Higher private investment in export-oriented industries helped mitigate a decline in public investment due to delays in project disbursements.

Fitch forecasts ongoing growth momentum following strong 1Q18 growth, with the economy likely to expand by 4.2 per cent in 2018 – above the BBB median of 3 per cent, but below Southeast Asian peers.

Fitch expects a modest deceleration in growth to 3.9 per cent in 2019 as global growth edges down from its 2018 peak.

A potential increase in trade protectionism poses a downside risk for the economy, given Thailand’s reliance on external demand.

It also expects the Bank of Thailand’s policy stance to remain accommodative, with the policy rate on hold at 1.5 per cent for the remainder of 2018 as inflationary pressures remain subdued.

Relatively weak governance scores constrain Thailand’s rating – in the 43rd percentile of the World Bank’s governance indicators compared with the BBB median score in the 58th percentile.

Continued delays to the general election date over the past year, which is now expected in February, add further uncertainty to the political landscape.

It does not appear that political uncertainty has significantly weighed on growth and investment outcomes over the past few years, but the potential for renewed political fissures remains during the transition back to civilian rule.