Long-term structural issues hobble Thailand's growth

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Thailand's aged demographic is a structural challenge, expected to result in labour shortages in the near future. Bangkok Post file photo

Thailand's economy has been mired in a prolonged period of low growth.

The economy before 1997 grew at an average rate of 7%, then fell to 3% after 1997. From 2012 to the present, growth has failed to average 2%, largely attributed to low investment.

Before 1997, investment comprised 40% of GDP, but after 1997 it dropped to 20-23%.

For 2026, the Bank of Thailand and Siam Commercial Bank (SCB) forecast economic growth of only 1.5%, marking the weakest performance in three decades, excluding extraordinary shocks such as the 1997 Asian financial crisis, the historic floods

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