Public debt remains elevated
Income convergence has stalled
Labour informality is high
Energy and transport are the largest emitters
Carbon prices are low
After a rapid catch up with the OECD average, incomes stagnated recently
Thailand's old-age dependency ratio is rising faster than those of peer countries
Recent macroeconomic developments
Thailand’s labour market showed strong resilience during the pandemic
Self-employed workers in agriculture have smoothed aggregate employment
Thailand’s unemployment rate is lower than that of other emerging market economies
Major exports and imports partners
Composition of goods trade with China
The currency recovered in early 2023 after weakening against the US dollar
Financial institutions appear solid, but private debt has increased
After peaking in mid-2022, inflation has decreased as interest rates rose
The fiscal deficit is narrowing but public debt has risen
Revenue enhancement is crucial to ensure fiscal sustainability
Education spending has declined and remains low
The population is ageing rapidly
Thailand’s tax revenue is small
The tax-and-transfer system could do more to reduce income inequality
Boosting productivity is crucial to sustain high economic growth
FDI to Thailand remained relatively low compared to peers in the region
Thailand has more stringent FDI restrictions than other countries
Thailand's trade facilitation performance has improved
Services trade faces tighter restrictions than in other countries
Corruption related indicators in Thailand remained relatively low
Thailand’s share of social security contributors is low
Social security coverage has gradually expanded
The share of informal labour has declined and is lower among young generations
Employment protection is rather strong in Thailand
Young people have been more affected by unemployment
The NEET rate has increased despite low youth unemployment
Thailand is committed to significant emission reductions
CO2 emissions from road transport have increased rapidly
Energy is necessary for economic growth
Thailand’s coal dependence is lower than in peer countries
Lowering energy intensity has helped contain CO2 emissions
Thailand’s current effective carbon prices are low
Energy subsidies remain in place for oil
Achieving net zero targets will be challenging
Low-income households spend relatively less on transport
Environmental policies are less stringent than in OECD countries, China and India
Renewable sources have increased in power generation
Thailand needs to increase the use of renewable energy sources
Motorisation is advancing in Southeast Asian countries
Energy consumption by product type
The electric vehicle market is still nascent in Thailand
Rail freight transport accounts for a small share in in Thailand
Industry and transport account for a large share of energy consumption
Energy efficiency has improved in recent years
Electrification has rapidly increased in the emerging Asian economies
Business energy efficiency has been declining and electrification has been slow
Thailand has rapidly increased R&D expenditure
R&D tax incentives are weaker than in other economies