Thailand Faces 14% GDP Loss by 2050 Without Climate Action, World Bank Warns

Thailand risks losing between 7% and 14% of its GDP by 2050 if it fails to adapt to climate change, according to a comprehensive World Bank report released on Friday.

However, strategic investments in climate resilience and green technology could instead boost the economy by 4-5% whilst positioning the country to achieve its high-income aspirations.

The Thailand Country Climate and Development Report (CCDR) warns that the costs of inaction far outweigh investment needs, with heat-related productivity losses, flooding, and water scarcity threatening the nation’s economic competitiveness and its goal of becoming a high-income country by 2037.

“Thailand’s future competitiveness will hinge on reducing the emission intensity of its economy and shifting production towards greener goods and services—steps that can create new industries, generate high-quality jobs, and keep Thailand attractive to investors in a low-carbon world,” said Melinda Good, World Bank Division Director for Thailand and Myanmar.

Mounting Physical Risks

Thailand ranks amongst the ten most flood-prone countries globally, with the Chao Phraya river basin—home to 40% of the population and generating 66% of GDP—particularly vulnerable.

The devastating 2011 floods, which caused damages equivalent to 12.6% of GDP, could be repeated with increasing frequency under climate change scenarios.