Thai economy is too dependent on fundamentals, economists warn

Pipat noted that the Thai economy had been growing at a steady pace in recent years, but this growth was being driven by such factors as low interest rates, fiscal stimuli, and the expansion of the tourism industry. These factors are not sustainable in the long term, and they are not leading to the creation of high-quality jobs or sustainable economic growth, he added.

He pointed to two key problems facing the Thai economy. First, the country is up against a demographic challenge due to a shrinking workforce and an ageing population. This is making it more difficult to generate economic growth.

Second, the Thai economy is facing a productivity challenge. Thai businesses are not as productive as businesses in other developed countries. This is due to several factors, among them low levels of education and training, a lack of innovation, and a lack of competition.

In another article also published by Krungthep Thurakij on January 22, economist Dr Santitarn Sathirathai compared the Thai economy to an ageing athlete. Like Pipat, he said that the Thai economy is growing more slowly than other countries in the region, and that it is being overtaken by its neighbours.

Santitarn pointed to several reasons for the Thai economy's slowdown. One reason is the ageing population, which means that there are fewer workers to support the economy. Another reason is the lack of innovation. Thai businesses are not as innovative as businesses in other countries, which makes them less productive.

Both Pipat and Santitarn stressed that the Thai government must take steps to address these challenges by investing in education, upgrading workers' skills, promoting innovation and creating a more competitive environment for businesses.