Thailand’s Aging Population Impacting Economic Growth
Thailand’s aging population and declining birth rate are impacting domestic consumption, which is crucial for economic growth, according to the Kasikorn Research Centre. In 2022, domestic consumption accounted for 58% of economic growth. Factors like high living costs and household debt contribute to reduced consumption, especially among the elderly, with many living below the poverty line.
The aging population and declining birth rate in Thailand are significantly impacting domestic consumption, a major driver of the country’s economic growth, reports the Kasikorn Research Centre (KRC).
In 2022, domestic consumption contributed 58% to Thailand’s economic growth, an increase from 53% a decade ago.
Unfortunately, similar trends are not observed in neighboring countries like Singapore, where domestic consumption's contribution fell from 37% to 31%.
Factors such as a sluggish economy, high living costs, and household debt contribute to reduced consumption, particularly among the elderly.
About 34% of Thai elderly live below the poverty line, and a significant portion works in low-income farming sectors with average monthly incomes of 6,975 baht.
KRC highlights the urgent need for the Thai government to modify its economic model to boost incomes and quality of life to counteract consumption decline.
Additionally, 99.5% of SMEs employing 71% of the workforce contribute only 35% of GDP, necessitating government assistance to adapt to economic changes.
KRC also advises incentives for hiring the elderly and attracting skilled foreigners to sustain economic stability.
In 2022, domestic consumption contributed 58% to Thailand’s economic growth, an increase from 53% a decade ago.
Unfortunately, similar trends are not observed in neighboring countries like Singapore, where domestic consumption's contribution fell from 37% to 31%.
Factors such as a sluggish economy, high living costs, and household debt contribute to reduced consumption, particularly among the elderly.
About 34% of Thai elderly live below the poverty line, and a significant portion works in low-income farming sectors with average monthly incomes of 6,975 baht.
KRC highlights the urgent need for the Thai government to modify its economic model to boost incomes and quality of life to counteract consumption decline.
Additionally, 99.5% of SMEs employing 71% of the workforce contribute only 35% of GDP, necessitating government assistance to adapt to economic changes.
KRC also advises incentives for hiring the elderly and attracting skilled foreigners to sustain economic stability.
