Bank of Thailand Governor Highlights Both Pros and Cons of the Informal Economy

Key summary

At the THE STANDARD ECONOMIC FORUM 2026 “Reinvent Thailand,” Mr. Witai Ratanakorn, Governor of the Bank of Thailand (BOT), discussed the informal economy, stating that it is not solely a negative aspect. He explained that some vendors in markets operate without registration and do not pay taxes, thus not being included in the formal economic system. Assessments by three agencies indicate that the Thai informal economy accounts for 48% of the GDP. Of this, over 35% is part of the formal economy but operates outside of it, while another portion is estimated to be "gray," representing approximately 13% of the GDP. Mr. Witai noted that many businesses in the informal sector have potential. If they can be integrated into the formal system and access credit, costs will be reduced, the country's potential will improve, and the GDP will expand. Therefore, the allocation of capital is crucial.