Thailand’s GDP is expected to grow by 3.6% in 2023, driven by robust private consumption and a recovering labor market, according to the OECD. The organization commends Thailand’s swift response to the COVID-19 pandemic for mitigating economic impacts but emphasizes the need for substantial reforms to ensure a solid and inclusive recovery.
The OECD’s second Economic Survey of Thailand highlights the positive impact of fiscal support in preventing a sharp economic contraction during the pandemic. However, it underscores the rapid increase in public debt, urging gradual fiscal consolidation. Immediate challenges for Thailand include phasing out pandemic support amid high inflation and addressing risks associated with trade dependency and global energy price fluctuations.
The organization stresses the importance of bold reforms to address challenges related to an aging population, digital transition, global value chains, and the green transition. Policy actions are deemed crucial to support higher income levels, particularly in light of a declining working-age population. Efforts to improve the business climate, embrace digital technologies, and promote competition are essential for Thailand’s sustained economic growth.
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