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Thailand has the Highest Income Inequality in East Asia, According to a New Report by the World Bank
(CTN News) – According to a recent World Bank analysis, Thailand has the greatest level of economic disparity in East Asia, with rural families suffering the most from the effects of poverty.
The national poverty rate has decreased from 58% in 1990 to 6.8%, according to the study “Thailand Rural Income Diagnostic,” but has been growing since 2016.
Since 79% of the poor live in rural regions, mostly in agricultural families, the situation is particularly dire there.
In 2020, rural poverty rates were 3% greater than those in metropolitan regions.
The bank attributed Thailand’s growing poverty rate to the country’s sluggish economy, stagnant agricultural and company revenues, and the Covid-19 problem.
According to the research, the South and Northeast have poverty rates almost twice as high as the national average.
However, rural families’ average monthly income was only around 68% of that of urban households.
According to the survey, rural families struggle with poor educational attainment, a high dependency rate, and challenging living circumstances.
Thailand has the ability to help rural families’ incomes develop more quickly and steadily, according to Fabrizio Zarcone, the World Bank’s country manager for Thailand.
“Policy measures that increase agricultural productivity, support diversification to higher value crops, and improve access to markets through better rural connectivity and digital technology adoption can help overcome the constraints faced by the rural poor,” he added. “As Thailand’s economy adjusts to a new normal post-Covid-19.”
The research also predicted that rural regions would be more affected economically by the Covid-19 situation than urban ones.
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