Rebooting Productivity for Resilient Growth
Thailand’s initial strong economic growth after the 2008 global financial crisis and subsequent plateauing as a middle-income tier economy is well-documented and a rich body of previous analyses have provided recommendations for how Thailand can jump start its objective of becoming a high-income economy.
The World Bank Group’s Thailand Country Private Sector Diagnostic (CPSD) attempts to build on this work by focusing on the private sector’s contribution to that vision of high growth, which assumes an even higher priority now, given the impact COVID-19 has had on the economy.
The report argues that addressing existing investment constraints and implementing an innovation- and knowledge-led growth model are two actionable projects that are urgently needed to adjust the trajectory of Thailand’s current path of economic growth toward high-income status. This model also represents a potentially powerful pathway to creating high-quality jobs by moving workers into high-productivity sectors, and to increasing the participation of women in the labor force by adopting new technologies. The CPSD sets out specific private investment opportunities that could create innovative markets and generate sustainable growth, but also identifies the constraints that might impede the realization of those opportunities. In providing recommendations to address these constraints, the CPSD underscores those interventions on the critical path in the reform agenda.