Connect with us

Economics

Thailand’s Human Capital Key to Long-Term Growth

Investing in human capital and pursuing economic reforms is critically important for Thailand to become a high-income nation

World Bank

Published

on

Amid a global slowdown and elevated trade tensions, the Thai economy is projected to grow by 3.8 percent in 2019 and 3.9 in 2020, according to the World Bank’s Thailand Economic Monitor released today.

Investing in human capital and pursuing economic reforms is critically important for Thailand to become a high-income nation with equal opportunities for all citizens.  

In 2018, despite external shocks to trade and tourism, growth of the Thai economy is estimated to have accelerated to 4.1 percent, the report says

The Thai economy proved to be resilient in the face of strong global headwinds due to strengthening domestic demand stemming from an upswing in private consumption and private investment.

In line with trends in the global economy, a slight economic slowdown is expected in 2019. Public infrastructure spending in expected to accelerate in 2019 and pick up in 2020 as the Eastern Economic Corridor projects are being implemented.

Weaker global growth to impact Thailand’s economy

“Weaker global growth will likely impact the export performance of Thailand and restrain manufacturing activities in export-oriented industries,” said Kiatipong Ariyapruchya, World Bank Senior Economist for Thailand.

“In this context, continued implementation of public infrastructure projects and economic reforms can help catalyze domestic demand in 2019 and support medium-term growth.”

Kiatipong Ariyapruchya, World Bank Senior Economist for Thailand.

Last October, The World Bank launched the Human Capital Index, which measures the productivity level for the next generation of workers relative to their full potential if all education and health outcomes were maximized.

While Thailand scores in the upper half of the various indicators compared to ASEAN countries and other upper-middle income country peers, there remains room for improvement.

In Thailand, a child born today will reach only 60 percent of potential, in terms of productivity and lifetime income.

Unequal education challenge

the Ministry of Education has plans to reform the Thai educational system into a whole new level
the Ministry of Education has plans to reform the Thai educational system into a whole new level

Unequal education quality in Thailand is one of the biggest challenges, with poorer areas being underserved. Due to under-resourced small schools, with inadequate infrastructure and education materials, the 12.4 years of basic schooling expected for a child born today in Thailand are equivalent to just 8.6 years – a learning gap of 3.8 years.

The high burden of non-communicable diseases and road traffic injuries has negatively affected the country’s adult survival rates, which is lower than half of the average global rate.

“Sustaining the pace and quality of structural reforms will be crucial for reducing poverty and raising Thailand’s long-term growth path above 4 percent in the face of demographic challenges caused by rapid aging,” said Birgit Hansl, World Bank Country Manager for Thailand

“To build a better future for all Thais, an emphasis on human capital investment is key. Addressing priority areas in education and health can go a long way in equalizing opportunities for the next generation.”


Birgit Hansl, World Bank Country Manager for Thailand

Priority areas for improving human capital in Thailand include addressing challenges faced by small schools where approximately one million poor children are currently getting inferior quality education.

To do so, efforts should focus on improving school-based management, and increasing the efficiency of public education expenditures, the report argues. Promoting healthier outcomes, particularly focusing on prevention and reducing risk factors, is essential to increase Thailand’s adult survival rate.

The Thailand Economic Monitor, published twice a year, is the World Bank Thailand’s office’s flagship report, analyzing the country’s economic performance and outlook. The January 2019 edition focuses on Thailand’s challenges and opportunities in enhancing human capital and reducing inequality.

http://www.worldbank.org/en/news/press-release/2019/01/16/thailands-human-capital-key-to-long-term-growth-and-reduced-inequality-world-bank-says

The World Bank's mission is to end extreme poverty and promote shared prosperity

Comments

Economics

Thai economy to grow 4% in 2021 following 6.5% decline in 2020

The World Bank is now expecting the Thai economy to see 4% growth this year, and a 4.7% growth in 2022, despite current challenges from the new wave of COVID-19 infections.

Olivier Languepin

Published

on

Crowded downtown area in Bangkok

The World Bank now expects that the Thai economy to expand by 4 per cent in 2021, according to the latest World Bank Thailand Economic Monitor report “Restoring Incomes, Recovering Jobs” released on Wednesday (Jan 20).

(more…)
Continue Reading

Banking

BoT sees mild impact of new COVID-19 wave on the economy

The Bank of Thailand (BoT) does not see the new wave of COVID-19 infections as having as much of an impact on the economy as the first wave, as fewer businesses have had to be suspended.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Despite a new and wider wave of COVID-19 infections in the country, the Bank of Thailand (BoT) has assessed that the economic impact of the situation will not be as severe as the first wave as the effects of the virus are not as pronounced, and public health preparations, including plans for vaccination, are in place.

(more…)
Continue Reading

Economics

COVID-19 brings first consumer confidence drop in 3 months

Consumer confidence in December 2020 was measured at 50.1 points, down from 52.4 the previous month. Economic confidence was also down to 43.5 from 45.6 points.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Concerns linked to the new wave of COVID-19 infections has weighed on both daily life and business, resulting in the first drop in the Consumer Confidence Index in 3 months.

(more…)
Continue Reading

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,609 other subscribers

Trending