Thailand has seen sound economic and social advances over recent decades, but economic growth is weakening in the face of several long-term challenges. Catch-up in GDP per capita has slowed, and the pace of poverty reduction has diminished. The key industries of tourism and manufacturing face hurdles, and changes in the global trade environment pose a risk. Macroeconomic policies are generally in good shape and inflation is low, although high household debt warrants close monitoring. Increasing public revenue is essential to lower public debt and fund future spending needs, such as managing an ageing population and climate change. To boost business productivity, Thailand needs to increase competition, simplify trade, attract foreign investment, reduce bureaucracy, and continue anti-corruption efforts. Climate change adaptation requires better management of flood and drought risks and developing resilient crops, while meeting emission targets depends on decarbonising electricity generation. Finally, widespread informality hurts productivity, fiscal revenues, and leaves many without access to social protection. Achieving better opportunities for all requires upskilling the workforce and coordinating reforms to expand social benefits while encouraging a shift to the formal economy.

SPECIAL FEATURES: STRENGTHENING PRODUCTIVITY, CLIMATE CHANGE ADAPTATION, TACKLING INFORMALITY 

Thailand’s fiscal crossroads: Time to act before pressures mount (Blog)

Raising Thailand’s productivity through regulatory reform (Blog)

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