Bank of Thailand Highlights Challenges of Informal Economy

On July 31, 2026, Bank of Thailand (BOT) Governor Withai Rattanakorn addressed the 'INTANIA Forum: Surviving Under the New World Order' at Chulalongkorn University, an event attended by Prime Minister Anutin Charnvirakul. During his lecture, Governor Withai highlighted that Thailand’s informal economy is currently ranked 14th in the world. He noted that this large informal sector results in substantial tax revenue losses, which impacts the national budget.

Governor Withai explained that the global economic landscape has shifted away from traditional globalization and free trade toward a 'Multi-World' order where no single power dictates direction. He pointed out that geopolitical tensions are increasingly influencing economic policy, with trade measures and taxes being utilized as tools for power struggles. Furthermore, he noted that global shocks—such as the pandemic, the war in Ukraine, trade conflicts, and instability in the Middle East—are occurring with greater frequency.

For residents and travelers, this report underscores the structural economic challenges facing the country. While the BOT emphasizes the need for greater economic resilience, the specific policy measures to formalize the economy or address these tax gaps remain to be confirmed. Observers are waiting to see how the government will respond to these findings to strengthen the national fiscal position.