Thailand’s health expenditure to record 7.1% CAGR until 2028

The adoption of digital health technologies and medical tourism will be key drivers of expenditure growth.

Thailand’s health expenditure is expected to grow at a compound annual growth rate (CAGR) of 7.1% until 2028, according to a report by BMI.

Meanwhile, expenditure for the private and public sectors is projected to grow by 9.4% and 6.4% respectively over the given period.

The report revealed that the integration of digital health technologies in line with the Thailand 4.0 policy will serve as a key driver of expenditure growth.

“Efforts to increase the use of AI in healthcare come as Thailand is experiencing a growing burden of chronic diseases and as the population ages placing increased pressures on the healthcare system,” The report said.

By 2050, the percentage of the total population aged 65 and older will reach 30%, an increase from around 10% in 2020.

However, a lack of training and education amongst healthcare personnel may serve as a key challenge for the country’s efforts to adopt AI.

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Moreover, BMI expects that digital health will continue to be a priority as the country aims to ease pressures on its healthcare system and improve services to attract medical tourists with partnerships playing a key role in the integration of such technologies.

Meanwhile, Thailand’s medical tourism industry will drive private healthcare growth.

The report mentioned that the country’s efforts to enhance the industry will drive demand for healthcare products and services.

“In 2023 for example, Thailand relaxed medical visas for foreigners in a bid to attract more medical tourists, this included lower cost visas and a change whereby medical visas allowed for multiple visits compared to one visit previously,” The report added.