Consumers Report Increased Confidence in Economic Recovery
PUBLISHED: 14 Feb 2025 at 05:37
In a positive turn of events, the Consumer Confidence Index (CCI) has reached an eight-month high, signaling an improvement in the economy. According to a comprehensive survey, this boost is attributed to effective government economic stimulus initiatives. The CCI has increased to 59.0 in January, up from 57.9 in December 2024, marking the fourth consecutive month of growth and hitting levels not seen since June 2024.
Experts indicate that consumers are feeling the impact of government efforts as domestic tourism sees a resurgence. However, despite this optimism, the CCI remains below the crucial benchmark of 100, suggesting that many consumers perceive the economic recovery as gradual.
Challenges persist, particularly the high cost of living and ongoing global tensions, including the conflicts in Russia-Ukraine and Israel-Hamas, which continue to affect domestic purchasing power, tourism, and exports. These factors raise concerns about future employment and may dampen consumer confidence in the near term.
Nonetheless, there is growing optimism for further recovery, contingent on the government’s ability to sustain domestic economic growth and mitigate external risks. The expectation is for gradual improvements in consumer confidence, as long as significant disruptions, such as trade disputes or conflicts, are avoided.
Political developments may also play a role; tensions surrounding constitutional amendments could potentially create uncertainty if the issue escalates in parliament. However, current indicators show no immediate negative influences on economic sentiment.
Significantly, the UCC anticipates Thai economic growth of 3.5-3.7% for the fourth quarter of 2024, with official figures set to be released on February 17. This improvement is projected to elevate overall growth for the year to around 2.6%.
Looking ahead, the UCC forecasts a growth rate of approximately 3% for this year, aligning closely with predictions from the Ministry of Finance of 3-3.5%.
