Thailand Weighs Productivity Reforms
Thailand is considering establishing a national productivity council under its draft 14th development plan to tackle slowing economic growth and achieve high-income status by 2037, asianews.network reported.
Annual productivity growth in the country has dropped to 1.7% since 2020, falling sharply from 4.8% in the early 2000s, according to Organisation for Economic Co-operation and Development figures.
Stalled Income Convergence
OECD Secretary-General Mathias Cormann highlighted stalled income convergence at an economic forum in Thailand, pointing out that GDP per person reached 40% of the OECD average in 2013 and remained at 40% in 2024.
Thailand transitioned to upper-middle-income status in 2011, but weak productivity has constrained broader economic expansion ever since.
Agriculture and Manufacturing Sectors Face Productivity Hurdles
Agriculture employs nearly 30% of Thailand’s workforce while contributing only 8% to 9% of GDP. Danucha Pichayanan, secretary-general of the National Economic and Social Development Council, told Bangkok Biznews that technology and precision farming are essential to boosting agricultural output.
Meanwhile, manufacturing sectors face rising automation, requiring continuous upskilling and reskilling to prepare workers for tasks involving artificial intelligence.
Draft Development Plan Pillars
The draft 14th National Economic and Social Development Plan focuses on raising total factor productivity across five key pillars, including economic transformation, public-sector reform, and human capital development.
Franziska Ohnsorge, the World Bank’s chief economist for Asia, warned at an October 2026 forum that stronger productivity remains critical as the country’s working-age population stagnates.
What Questions Thailand's Productivity and Goals Raise?
What is Thailand’s target year for high-income status?
Thailand aims to become a high-income country by 2037.
How much has annual productivity growth dropped?
Productivity growth fell to 1.7% annually after 2020, down from 4.8% in the early 2000s.
What percentage of the workforce does agriculture employ?
Agriculture employs nearly 30% of Thailand’s workforce while contributing 8% to 9% of the country’s GDP.
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