Cover of The Report: Thailand 2016

The Report: Thailand 2016

The second-largest economy in ASEAN after Indonesia, Thailand has developed a positive international reputation on the back of its pro-investment policies and well-developed infrastructure, standing as one of the most liberalised and business-friendly markets in the region.

According to the UN Conference on Trade and Development, Thailand has been among eight priority destinations for foreign investment since 2012. Factors weighing on growth in 2016 will include an ongoing economic slowdown, weakening global demand for Thai exports and growing levels of consumer debt. The government’s investment promotion agenda, while perhaps more complicated than in previous years, also addresses the dual challenge of labour shortages and the middle-income trap through promotion of both labour-intensive and high-tech industries, while potential membership in two major trade blocs could see regional and international exports soar in the coming years. Although the near-term forecast is dampened by global volatility, weakening demand and the impact of China’s slowdown, trade in Thailand will remain on an upwards trajectory in 2016, and investment, though unlikely to meet government targets, is nonetheless expected to bounce back from a challenging 2015.

OBG & Thailand