NationThailand-Jan 13
Economists warn that Thailand’s new government must abandon short-term populist handouts and implement long-term structural reforms to escape a low-growth trap, with GDP growth projected at only 1.5%. The call for reform is driven by deep structural problems, including declining industrial competitiveness, an aging population, and an overvalued currency, which cannot be solved by stimulus alone. Specific long-term growth strategies proposed include transforming agriculture to high-value products, liberalizing the renewable energy market, and pursuing OECD membership, which could boost annual GDP growth by 1.6%. Continuing with deficit-funded populist policies without enacting reforms risks a sovereign credit rating downgrade and further economic stagnation, according to the experts. Thailand’s incoming government must abandon populist handout policies and implement radical structural reforms if the country is to escape its low-growth trap, leading economists warned at a major economic forum on Tuesday. Speaking at the KKP Year Ahead 2026 seminar, top economic advisers painted a sobering picture of Thailand’s economic predicament and outlined an urgent reform agenda that prioritizes productivity gains and market liberalization over short-term stimulus measures. Supavud Saicheua, chairman of the National Economic and Social Development Council (NESDC) and adviser to Kiatnakin Phatra Financial Group (KKP), delivered a stark assessment of current political discourse, noting that most political parties have failed to address Thailand’s fundamental economic challenges. Read more at:
