Thailand - Systematic country diagnostic : getting back on track - reviving growth and securing prosperity for all

Thailand has made tremendous progress toward the twin goals of eliminating extreme poverty and boosting shared prosperity. Notably, Thailand has achieved these gains despite high political instability, with short-lived constitutions and frequent military coups. However, continued instability could affect future growth and prospects for shared income gains. Moreover, poverty and inequality continue to pose significant challenges. Slower growth than in the past, if it continues, will constrain further progress in reducing poverty and promoting inclusion. The Systematic Country Diagnostic (SCD) of Thailand identifies paths to foster higher productivity -driven growth and shared prosperity. The SCD aims to help the country, the World Bank Group (WBG), and other partners identify key priority or focus areas for progress toward sustained poverty reduction and shared prosperity. The analysis presented is not limited to areas or sectors where the WBG is currently (or anticipates to be) active but rather focuses on the country’s key development challenges and the underlying constraints to meeting the objective of growth leading to shared prosperity and poverty reduction. Where appropriate, the analysis contrasts the experience of Thailand with its neighbors and peers. This SCD is organized as follows. It begins with an overview of the country context, describing some distinctive country features that have affected Thailand’s development. It then takes a closer look at economic growth in Thailand, analyzing key trends and the likely prospects for future growth. Against this backdrop, recent progress in reducing poverty and promoting inclusion is examined, with a focus on understanding the factors that drive or constrain inclusive growth. The risks to Thailand’s growth and its inclusiveness and sustainability going forward are then discussed. Based on this analysis as well as inputs from extensive consultations with government and other stakeholders, some key priority areas for ensuring strong, inclusive, and sustainable growth in Thailand are proposed.