The University of the Thai Chamber of Commerce (UTCC) reported that Thai consumer confidence dropped to a 13-month low in August, marking the sixth consecutive monthly decline.
- Thai consumer confidence has hit a 13-month low due to concerns about slow economic growth and high living costs, with consumers expressing skepticism about a quick economic recovery.
- The lack of clear and tangible economic stimulus measures from the government has contributed to consumers’ decreased confidence in the economy’s rapid rebound.
- The new government under Prime Minister Paetongtarn Shinawatra aims to stimulate the economy by accelerating budget disbursement and implementing a “digital wallet” stimulus program worth 145 billion baht.
Consumers are less confident about a quick economic recovery, despite the political situation stabilizing. They are waiting for tangible economic stimulus measures from the government. Confidence could improve if the government accelerates budget disbursement and demonstrates clear economic recovery later this year.
Despite the declining consumer confidence, the new government has outlined plans to stimulate the economy. Prime Minister Paetongtarn Shinawatra, who took office last month, announced a 145 billion baht (US$4.3 billion) “digital wallet” stimulus program, aimed at supporting vulnerable groups. This measure is part of the government’s efforts to boost Southeast Asia’s second-largest economy, which expanded by 2.3% in the second quarter of 2024, following a 1.9% growth last year.
