Baku:The World Bank has advised Thailand to enhance its economy and boost GDP growth to 5% by focusing on four pivotal pillars for future development.
According to Thai News Agency, the World Bank projects Thailand's economic growth to be 2% this year and 2.3% next year. The bank outlines Thailand's path to becoming a high-income country, emphasizing the need to drive GDP growth to 5-5.4% through the adoption of Small AI, digital economy advancements, green infrastructure investment, and energy security.
Dr. Kiatipong Ariyaprajya, Senior Economist for Thailand at the World Bank Group, noted that the revised GDP growth forecasts are an improvement over last year's figures, which were affected by inflation and high global crude oil prices. Key contributors to this upward revision include the recovery of the export sector and increased investment in AI technology and electronic components.
Nevertheless, challenges such as high household debt and public debt close to the 70% of GDP ceiling need careful monitoring. Achieving the Thai government's target of 3% economic growth is seen as a significant challenge.
The World Bank's report, "Building Thailand's Future Today," suggests that Thailand must accelerate progress through four main pillars new high-value industries, workforce upskilling and retraining, developing secondary cities for inclusive growth, and fostering new entrepreneurs and SME funding access.
The analysis identifies five target industry groups crucial for future employment and economic drive agriculture and food, health and sustainable tourism, advanced manufacturing, data centers, green advanced manufacturing, creative economy, and digital economy.
Dr. Kiattipong highlighted the adoption of Small AI technology in everyday business operations to boost productivity. Despite its current low contribution of about 6% to GDP, Thailand's position as an upper-middle-income country presents an opportunity to upskill the workforce for innovative roles.
In digital infrastructure, Thailand leads the ASEAN region, with systems like Digital ID and PromptPay having effectively supported public policies during the COVID-19 pandemic. However, enhancing data connectivity, governance, and security remains crucial for building public trust.
The World Bank supports Thailand's industrial and investment policies, especially in energy transition and security. The country has fiscal capacity for key infrastructure investments, including transportation, energy security, and climate adaptation initiatives like solar energy and water management to address flooding and drought issues.