Thai economy set to boom with 106 billion baht splash with new year expenses

The University of the Thai Chamber of Commerce (UTCC) predicts a staggering 106 billion baht surge in consumer spending during the upcoming New Year festivities – a four-year high that could inject new life into the nation’s financial veins.

President Thanavath Phonvichai, the maestro behind this optimistic symphony, attributes the spending spree to the government’s strategic new year’s gift measures.

“Consumer spending is set to hit a four-year peak, fuelled by the infectious enthusiasm generated by the government’s holiday initiatives. This festive season is not just about celebration; it’s a financial revolution that promises to boost our overall economy.”

The UTCC survey indicates an estimated expenditure of 6,000 baht per person for local revelries and an extravagant 35,000 baht for international escapades. The forecasted spending breakdown includes a whopping 19.4 billion baht for parties, merit-making, and general consumption, with over 5 billion dedicated to durable goods and luxury items. Domestic and international travel is projected to contribute a jaw-dropping 60 billion baht to the economic spectacle, reported Bangkok Post.

However, not all is golden in Thailand. A parallel survey reveals that 50% of respondents expect the economy to expand by a modest 2.1% to 2.5% this year.

“Thais perceive the economy as lacking vibrancy amid an uneven recovery. While exports and tourism show signs of life, it’s insufficient for a full-fledged rebound.”

Sauwanee Thairungroj, adviser to the University of the Thai Chamber Council, sounds a cautionary note, highlighting concerns about the rising cost of living.

“If interest rates continue their ascent, it could spell trouble for small businesses, impacting their expenses and repayments. We implore the government and financial institutions to tread carefully in their interest rate policies.”

Despite economic reservations, Sauwanee acknowledges the profitability of banks and urges them to play a role in fostering financial survival.

“Even in challenging times, banks remain profitable. We urge these financial behemoths to manage interest rates judiciously, ensuring the public and businesses can weather the financial storm.”