Thailand Productivity Council Proposal Targets Slow Growth Ahead of 2037 High-Income Goal
Thailand is considering establishing a national productivity council under its draft 14th development plan, Bangkok Biznews reported November 10, 2026, as slowing productivity growth threatens the nation’s ambition to reach high-income status by 2037.
Annual productivity growth in the country sits at 1.7 percent according to Organisation for Economic Co-operation and Development data. That rate is down from 4.8 percent in the early 2000s.
Danucha Pichayanan, secretary-general of the National Economic and Social Development Council, told Bangkok Biznews that discussions with the OECD included creating a dedicated agency or national committee. Stronger productivity remains central to lifting economic growth toward 5 percent annually as expanding the workforce becomes increasingly difficult.
Thailand's income convergence stalled while workforce challenges persist
Thailand’s GDP per person rose from 30 percent of the OECD average in 2000 to 40 percent in 2013, but remained at 40 percent in 2024, according to OECD Secretary-General Mathias Cormann. Cormann highlighted the stalled income convergence during the Future-Ready Economy 2026 forum in October.
Agriculture employs nearly 30 percent of Thailand’s workforce while contributing only 8 to 9 percent of GDP. Agricultural GDP grows by about 2 to 3 percent, with adverse weather and disasters pushing growth below its average in some years.
Manufacturing faces distinct pressures as automation spreads. Danucha emphasized continuous upskilling and reskilling for workers handling production alongside artificial intelligence.
Draft 14th Development Plan Pillars and OECD Recommendations
The draft 14th National Economic and Social Development Plan centers on productivity across five pillars: economic transformation, public-sector reform, human capital development, sustainable resource management, and innovation investment. The framework aims to raise total factor productivity and address structural distortions.
The OECD recommended establishing a productivity council supported by a secretariat drawing staff from member institutions and academia. The proposal involves the NESDC alongside institutional groupings, including the Ministry of Industry.
Franziska Ohnsorge, the World Bank’s chief economist for Asia, stressed at an October 8, 2026 forum that stronger productivity would be essential to sustain growth as the working-age population stagnates or shrinks.
Danucha noted that discussions at the OECD Global Forum on Productivity in Costa Rica identified four priorities: reducing structural distortions, utilizing more detailed data, spreading foreign direct investment benefits, and preparing workers for artificial intelligence.
Frequently Asked Questions About Thailand Productivity Reforms
What is Thailand’s current productivity growth rate?
The OECD puts Thailand’s annual productivity growth at 1.7 percent since 2020, down from 4.8 percent in the early 2000s.
Which organization proposed the national productivity council?
The OECD proposed the council in its 2025 report titled Strengthening Productivity Analysis for Policymaking in Thailand.
What economic milestone is Thailand targeting by 2037?
Thailand aims to achieve high-income country status by 2037, supported by ambitions to achieve economic growth of 3 percent or more and raise the pace towards 5 percent a year.
How does the agricultural sector compare to manufacturing in GDP contribution?
Agriculture employs nearly 30 percent of Thailand’s workforce while contributing only 8 to 9 percent of GDP, with annual growth averaging 2 to 3 percent.