If you have been planning to invest in Thailand, this is the right time. Why did I say so? Well, look at the statistics, the country’s economic outlook has improved so much. In fact, Thailand is likely to witness 4.1% growth in 2018. And this has been the highest since 2012. To secure growth, benefiting everyone, Thailand needs to implement major reforms to increase domestic demand and prepare to cater to the needs of the population.
- Tourism: With 34 million tourists or more visiting Thailand annually, tourism is the key driver of growth, which stood at 10.6% of GDP in 2017. Though tourism is booming in Thailand, it is concentrated in only a few selected tourist hotspots.
- Public Investment: Increasing public investment in Thailand can assist in spurring domestic demand while making growth more inclusive. Besides, infrastructure development can bring in more private investors and similarly can scale-up growth prospects by adding more to the capital stock.
- More Workforce Participation: In a motive to ease the effect of shrinking labor force, Thailand is promoting workforce participation. Women participation is relatively higher than men in Thailand. To boost labor productivity, the government is offering pension reform that includes providing adequate coverage and increasing the pensionable age.
- Digital Revolution: The Thai government has launched a national e-payment system, helping to boost tax collection efficiency. Additionally, to upgrade Thailand’s strong manufacturing base both in electronics and automobiles, the country is extending to new sources of growth, including industries like biotechnology, robotics, and aerospace.
- Promotion Measures: Thailand Board of Investment keeps on approving promotion measures to boost investment across different level both for big projects in targeted industries and the grassroots economy. In addition, the measures also include Smart City Promotion, digital ecosystem, and a measure to promote the development of innovation, and measures to attract BOI promoted companies for being listed on the Stock Exchange of Thailand.
With these in line, the country’s growth momentum is expected to continue in 2018. According to sources, growth in tourism and exports will sustain this momentum.
