The Thai Economy: A Lost Decade?

19 Pages Posted: 9 Mar 2018 Last revised: 10 May 2019

See all articles by Krislert Samphantharak

Krislert Samphantharak

University of California, San Diego - School of Global Policy and Strategy

Date Written: May 7, 2019

Abstract

The Thai economy has been underperformed during the last decade. The average annual GDP growth during 2007-2016 was merely 3.2 percent. Not only was this growth rate one of the lowest among all of the economies in Southeast Asia, it was also far below what Thailand experienced during the glorious “Asian Miracle” years in the early 1990s. What happened to the Thai economy in the last decade? Many critics blame the global economic slowdown following the global financial crisis of 2008-09. Others accuse the post-2006 political instability in the country. This chapter argues that although both factors undoubtedly contributed to the underperformance of the Thai economy, the root of the problem goes deeper — the Thai economy is fundamentally weak regardless of what recently took place in domestic politics or in the global economy. The weaknesses include a lack of productivity improvement, outdated export commodities, aging society, troublesome education system, and high inequality. Political problems and unfavorable global economic environment just exacerbate the situation.

Keywords: Thailand, Middle Income Trap, Politics, Lost Decade

JEL Classification: O1, O53

Suggested Citation

Samphantharak, Krislert, The Thai Economy: A Lost Decade? (May 7, 2019). Available at SSRN: https://ssrn.com/abstract=3135033 or http://dx.doi.org/10.2139/ssrn.3135033

Krislert Samphantharak (Contact Author)

University of California, San Diego - School of Global Policy and Strategy ( email )

9500 Gilman Drive
La Jolla, CA 92093-0519
United States
858-534-3939 (Fax)

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