# Thailand’s GDP to grow 3.6% next year (OECD)

- Link: https://www.thailand-business-news.com/economics/116720-thailands-gdp-to-grow-3-6-next-year-oecd
- Published: 2023-12-08T10:17:11+07:00
- Author: Boris Sullivan

Thailand’s GDP is predicted to grow by 3.6% next year, driven by strong private 
consumption and a recovering labor market, according to the OECD.

## Key Takeaways

 * Thailand’s GDP is projected to grow by 3.6% in 2023 due to strong private consumption
   and a recovering labor market, supported by rising tourist arrivals.
 * The OECD praises Thailand’s prompt policy response to the COVID-19 pandemic for
   cushioning the negative economic impacts, but highlights the need for bold reforms
   to ensure a solid and inclusive recovery.
 * Thailand’s immediate challenges include phasing out pandemic support measures
   amidst high inflation and addressing the risks associated with its dependence
   on trade and investment flows, as well as global energy price fluctuations.

The second [**OECD Economic Survey of Thailand**](https://www.oecd.org/economy/thailand-economic-snapshot/)
says that strong fiscal support has helped to avoid a sharp economic contraction
during the pandemic but public debt has increased rapidly over the past years and
fiscal consolidation should now continue at a gradual pace.

ADVERTISEMENT

> The Thai economy is projected to continue its gradual recovery, with real GDP 
> expected to grow by 3.6% in 2024.
> [OECD Economic Surveys: Thailand 2023 | en | OECD](https://www.oecd.org/countries/thailand/oecd-economic-surveys-thailand-2023-4815cb4b-en.htm)

The organization highlights Thailand’s prompt response to the COVID-19 pandemic 
as a key factor in cushioning its economic impact. However, the OECD advises that
bold reforms are necessary for a more solid and inclusive recovery, including addressing
challenges related to an aging population, digital transition, global value chains,
and the green transition.

Further policy action is crucial to support the convergence towards higher income
levels, especially considering the declining working-age population. It is imperative
to make stronger efforts in improving the business climate, embracing digital technologies,
and fostering competition.

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It also emphasizes the need for policy action to boost productivity, improve the
business climate, adopt digital technologies, and expand trade agreements. The OECD
warns of downside risks such as dependence on trade and investment flows and vulnerability
to global energy price fluctuations.

This can be achieved by relaxing the remaining restrictions on market entry and 
foreign direct investment, particularly in the services sector, as well as expanding
trade agreements to adapt to the changing patterns of global trade. Additionally,
it is important to continue initiatives aimed at preventing and combating corruption.