Thai consumer confidence fell to a 13-month low in August due to slow economic growth and high costs. The new government plans a 145 billion baht stimulus to boost recovery.
Consumer Confidence Hits a Low
The University of the Thai Chamber of Commerce (UTCC) has reported a concerning decline in Thai consumer confidence, reaching a 13-month low in August. This marks the sixth consecutive month of reduced optimism, largely attributed to worries over slow economic growth and escalating living costs.
Government Response to Economic Concerns
Consumers are increasingly skeptical about a swift economic recovery, particularly as they await concrete stimulus measures from the government. The recent political stabilization under Prime Minister Paetongtarn Shinawatra has yet to translate into heightened consumer confidence, with the need for accelerated budget disbursement being emphasized to foster optimism.
Stimulus Plans for Economic Recovery
To address these challenges, the new government has proposed various initiatives, including a substantial “digital wallet” stimulus program worth 145 billion baht (approximately US$4.3 billion). This program aims to support vulnerable populations and stimulate economic growth, as Thailand recently reported a modest economy expansion of 2.3% in the second quarter of 2024.
