Bank of Thailand: Informal Economy Accounts for 48% of Thailand's GDP, with Illicit Funds Making Up Approximately 13%

Key summary

Mr. Witai Ratanakorn, Governor of the Bank of Thailand (BOT), revealed that a study of economic data from three related agencies indicates that the informal economy in Thailand is substantial, accounting for 48% of the country's Gross Domestic Product (GDP). Approximately 13% of the GDP is estimated to be comprised of illicit funds, with a provisional value of approximately 2.46 trillion Thai baht. While these figures represent a compilation of findings from various agencies and are not a direct official calculation, they highlight the significant volume of illegal money. Mr. Witai stated that lessons learned from other countries show that relying solely on legal measures is not a sustainable solution to the problem of illicit capital. He explained that when one network is dismantled, another can emerge. Without cooperation from all sectors, this cycle will repeat itself. Therefore, for sustainable economic growth, it is necessary to allocate resources appropriately, reduce the leakage of funds from the informal sector and corruption, and bring the informal economy into the formal system.