6-8-2024 (BANGKOK) Thailand’s consumer confidence has plummeted to its lowest point in nearly a year, marking the fifth consecutive month of decline. The downward trend reflects growing unease over political instability and a sluggish economic recovery, according to a recent survey.
The University of the Thai Chamber of Commerce’s latest consumer confidence index, based on responses from 2,244 participants, revealed a significant drop from 58.9 in June to 57.7 in July. This figure represents the lowest level of consumer confidence in 11 months, with all components of the index showing a decrease.
Thanavath Phonvichai, head of the university, highlighted several factors contributing to the decline. “Consumers remain anxious about high living costs in the face of sluggish economic growth,” he explained during a news conference. Phonvichai pointed to delays in government budget disbursement as a partial cause for the economic stagnation.
Adding to the economic concerns, political uncertainty looms large on the horizon. The spectre of potential court verdicts that could lead to the dissolution of the main opposition party and the dismissal of Prime Minister Srettha Thavisin has further eroded consumer confidence.
The survey underscores the complex challenges facing Thailand’s economy, as it grapples with both domestic political issues and the ongoing global economic pressures. The combination of these factors has created a perfect storm of consumer anxiety, reflected in the consistently declining confidence index.
Despite the gloomy outlook, there is a glimmer of hope on the horizon. Phonvichai noted that the government’s digital wallet stimulus programme, scheduled for implementation in the final quarter of this year, could provide a much-needed boost to the economy. “We anticipate an immediate positive impact on private consumption once the programme is rolled out,” he stated.
The digital wallet initiative is part of the government’s efforts to stimulate economic growth and alleviate some of the financial pressures faced by Thai consumers. However, its effectiveness in reversing the trend of declining consumer confidence remains to be seen, particularly in light of the ongoing political uncertainties.
