Thailand’s Path to High-Income Status: Boosting Secondary City Growth

Bangkok:Thailand needs to enhance productivity in its secondary cities alongside Bangkok to achieve high-income status by 2037.

According to Thai News Agency, the World Bank released a report on Tuesday emphasizing the importance of increasing Thailand's per capita GDP, which needs to grow at an average annual rate of 5.4% over the next decade. The report, titled "Thailand Cities of the Future: Urban Foundations for a High-Income Economy," highlights the necessity of unlocking the potential of regional cities to reach this goal.

The report indicates that while Bangkok will continue to be the main economic hub of Thailand, strengthening secondary cities can play a significant role in supporting productivity, investment, and resilience across the country. Alejandro Alcala Gerez, World Bank Operations Manager for Thailand and Myanmar, noted that economic activity is heavily concentrated in Bangkok, which accounts for nearly half of the country's economic output. This concentration brings rising economic costs, such as significant traffic congestion impacting the city's Gross Regional Product.

Stephen Ndegwa, World Bank Division Director for Thailand and Myanmar, remarked that developing Thailand's future cities is vital for growth and competitiveness. The report calls for strategic spatial investments to address the current imbalance and suggests a three-pronged strategy: enhancing Bangkok's economic productivity, building strong urban foundations nationwide, and scaling up secondary cities with high economic potential.

Dr. Poon Thiengburanathum, Deputy Director for Planning and Strategic Management at the Program Management Unit on Area-Based Development, emphasized the importance of strategic investment in urban infrastructure and services to maximize economic strengths. The study was prepared collaboratively by the World Bank, PMU-A, and the Urban Design and Development Center.