NationThailand-June 3
While government is making some progress in revitalizing the Thai economy, much more needs to be done if Thailand is not to fall even further behind. Compared to its neighbors, the Thai economy has grown at a slower pace in recent times, well below its potential, analysts say. In the first quarter of 2024, it grew by 1.5% year-on-year, while in 2023, it expanded by just 1.9%. This is not only a result of the global economic conditions but also due to the country’s production structure, which has led to a decline in the competitiveness of Thai-produced goods on the global market, causing decreased exports and impacting overall GDP growth. Efforts have been made to target specific industries and promote the Eastern Economic Corridor (EEC) to attract investment but have yet to show palpable results. Exports are a crucial driver of the Thai economy, but competition with regional rivals has become more challenging. In the first four months of 2024, the value of Thailand’s exports was $94.274 billion, compared to Vietnam’s $123.928 billion and Malaysia’s $100.836 billion. This reflects Thailand’s inability to compete effectively within the region. Additionally, foreign direct investment (FDI) has been relatively low. The National Economic and Social Development Council (NESDC) reported that Thailand’s FDI is significantly lower than that of many other countries. In 2023, Indonesia’s FDI net flow was $21.701 billion, Malaysia’s was $18.500 billion, Vietnam’s was $8.255 billion, and Thailand’s was only $2.969 billion. Tim Leelahaphan, assistant managing director for Economics in Thailand and Vietnam at Standard Chartered Bank stated that restructuring the Thai economy will take time due to its long-term nature, addressing issues such as enhancing competitiveness and resolving problems related to an ageing society. Read more at: https://www.nationthailand.com/business/economy/40038514
