The World Bank has revised up Thailand’s economic growth to 4.1% in 2018 from its previous estimate of 3.6% given its robust performance. Similarly, the bank has forecasted the country’s economy in 2019 and 2020 to 3.8% for both the years plus the global economic growth is expected to remain robust at 3.1% in 2018, before slowing gradually in the next two years as the economy decelerates while the recovery of the primary commodity-exporting market economies levels off.
However, growth alone would not be sufficient to cater to pockets of extreme poverty across the world. Thus, it is crucial for the policymakers to focus on ways to back the growth in the longer run. And that can be done by boosting productivity alongside labor force participation.
On the economic rise by 4% be this year, UIrich Zachau, the World Bank Director for Thailand, Regional Partnerships and Malaysia, said that Thailand has the potential with intensifying structural reforms in order to raise productivity. In addition to skills and education, strong implementation of quality infrastructure investments, especially in services, will be the primary things for lifting Thailand on to a new level; thus ensuring long-term growth. As for the new report, it highlights the importance of innovation for long-term growth.
