Video transcript
Thailand’s living standards have improved significantly in past decades, but the pace of change has slowed in recent years.
GDP growth will slow to 1.5% in 2026 from 2.0% in 2025.
Monetary policy could provide additional support if growth weakens further, while fiscal policy should focus on reducing the public debt burden.
Mobilising additional revenues would help lower public debt and face spending needs related to population ageing and climate change.
To increase revenues:
- Raise the rate of VAT and broaden its base
- Reduce tax expenditures
- Lower thresholds for personal income taxes
Productivity growth has slowed, and product market regulations are more restrictive than the OECD average.
To increase productivity:
- Reduce regulatory barriers to competition
- Continue lowering administrative burdens on businesses
- Accelerate efforts to combat corruption
More than half of workers are in the informal sector. Better access to training and social protection is needed.
To tackle informality:
- Strengthen vocational training and improve school career guidance
- Expand non-contributory pensions and healthcare
- Make it easier for businesses to formalise through easier regulation and simplified taxation
Thailand is highly exposed to the effects of climate change.
Further action is needed to mitigate climate risks and reach Thailand’s ambitious goal of carbon neutrality by 2050.
To accelerate climate change adaptation and decarbonisation:
- Strengthen early warning systems and investment in climate-resilient infrastructure
- Diversify crops and promote best practices among farmers
- Reduce greenhouse gas emissions from electricity generation
To learn more, read the OECD Economic Survey of Thailand 2025 at oe.cd/thailand.