Challenges on the horizon
While Thailand’s vision for growth is commendable, the World Bank representative pointed out three significant challenges:
(a) Domestic structural weaknesses: A declining working-age population, slowing private investment, and weakened productivity growth present obstacles to Thailand’s long-term growth prospects. Addressing these structural challenges will be essential for reclaiming higher growth trajectories and achieving high-income status by the desired timeframe.
(b) Global headwinds: Global economic uncertainties, such as high inflation, tight financial conditions, and record debt levels, may impact Thailand’s recovery momentum through the goods trade and financial channels. Slower-than-expected growth in the East Asia and Pacific region, particularly in China, could further affect the Thai economy.
(c) Political stalemate: Internal political…
