This Assessment is published on the responsibility of the Secretary-General of the OECD. The draft report was discussed at a meeting of the Economic and Development Review Committee on 10 July 2020, with participation of representatives of the Thai authorities. The 2020 OECD Economic Assessment of Thailand was prepared by Kosuke Suzuki, Marieke Vandeweyer, Ricardo Espinoza, Miso Lee, Laura Reznikova, and Tan Kay Kiang, under the supervision of Patrick Lenain. It benefitted from contributions at various stages by Alvaro Pereira, Isabell Koske, Frank Van Tongeren, Christine Arriola, Inese Rozensteine, Andrew Bell, Alessandro Goglio, Michele Cimino, Andrea Cornejo, Norihiko Yamano, Peter Horvát, Manasit Choomsai Na Ayudhaya, and Thanit Herabat. Isabelle Luong provided statistical assistance and Stephanie Henry provided editorial support. Support from the governments of Japan, Thailand and Malaysia is gratefully acknowledged.This is the first Economic Assessment of Thailand.Information about the latest as well as previous Surveys and more information about how Surveys are prepared is available at http://www.oecd.org/eco/surveys.

Thailand made impressive economic and social progress over the past decades, thanks to its strong policy framework, friendly business climate, and attention to citizens’ well-being. However, the COVID-19 crisis has interrupted this progress, and a severe recession will occur in 2020, like in most other countries. The economic recovery will be slow, and achieving high-income country status will require more policy reforms focused on productivity growth and human capital accumulation. Together with environmental protection and inclusive growth, these goals are at the centre of the government’s “National Strategy 2018-2037”.

Despite successful economic and social progress in the past decades, new challenges are emerging, not least those that result from the COVID-19 outbreak and its socioeconomic consequences. To achieve a high-income status, returning to “business as usual” is no longer sufficient. Implementing substantial structural reforms, while maintaining macroeconomic stability and improving inclusiveness, is more than ever a prerequisite to re-boost economic growth. This chapter discusses policies to regain productivity and tackle social imbalances, both of which would further improve the wellbeing of Thailand’s population.

Due to rapid population ageing, globalisation and automation, Thailand’s labour market is going through rapid changes, and so do the skills required for higher employability. To ensure that Thai people are equipped with the skills that are in demand in the labour market, it is important to provide them with sufficient and quality life-long learning opportunities. This chapter focuses on policies to improve the responsiveness of the education system as well as adult learning programmes. The chapter also highlights the challenges related to the COVID-crisis, which will involve more demand for skills specialised in ICT and healthcare, but also the use of technology for teaching and learning.

Services are an important part of global economic activity and of international trade. On top of the services supplied directly to consumers, services are also provided indirectly as components of manufactured goods. Digital services are a fast-growing sector and likely to remain so after the COVID-19 crisis and the rising reliance on contactless technologies. By contrast, services involving close proximity, such as tourism and international travel, have been hit drastically. To become a high-income country, Thailand needs to focus on high value-added services with policy support to the development of skills and technology. This chapter discusses how Thailand can seize the opportunity of growing international trade in services.