Thailand has achieved remarkable economic progress over the past decades. A strong and timely policy response helped to cushion the economic and social impact of the pandemic, and of high energy and food prices. While bold fiscal support prevented the economy from falling into a recession, public debt has risen and fiscal consolidation should now continue at a gradual pace. Rising social demands, population ageing and the green transition will likely add to public spending pressures and call for raising additional tax revenues. Boosting productivity and mastering the transition towards more sustainable and inclusive growth will require stepping up delayed structural reforms.