Tuesday, February 27, 2024

Thailand’s potential economic growth to be the lowest among ASEAN economies

Thailand’s potential economic growth is predicted to be the lowest in the ASEAN region due to aging demographics, reduced investment, and decreased productivity. Structural reforms in human capital, education, and tax are needed for improvement.

Economic Projections for Thailand

Thailand’s potential economic growth is expected to be the lowest in the ASEAN region over the next 20 years, according to the World Bank. The report cites several factors contributing to this slowdown, including an aging population, declining productivity growth, and increasing global competition.

Challenges and Solutions

To improve long-term growth potential, Thailand needs structural reforms focused on investing in human capital, education, health, climate change adaptation, tax reform, and promoting foreign direct investment in innovative and environmentally-friendly sectors. With targeted social assistance, improved public spending efficiency, and increased tax revenue, Thailand can strengthen its potential growth to 4-5% per year in the long term while addressing welfare, poverty alleviation, and fiscal sustainability.

Sustainable Growth Strategies

Thailand’s economy is projected to face a prolonged period of low growth over the next two decades, according to a recent report by the World Bank. Thailand’s potential economic growth over the next 20 years is projected to be the lowest among ASEAN economies due to aging demographics, decreased private investment, and reduced labor productivity.

Source : Thailand’s potential economic growth to be the lowest among ASEAN economies

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