BANGKOK, May 8 (TNA) — The consumer confidence index in April was the lowest in nearly 22 months due to the impacts of the coronavirus disease 2019 (COVID-19).
Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce, said the index in April was at 47.2, the lowest in 21 years and 7 months since October 1998 when the university started its surveys on consumers’ confidence.
Consumers were concerned about the COVID-19 pandemic and its negative impacts on the Thai economy including unemployment, he said.
The index fell in all categories and most categories showed continuous declines for 14 months, Mr Thanavath said.
“The Thai economy has entered its technical recession. It will contract for three quarters consecutively and will grow 1-2% in the fourth quarter thanks to the restart of businesses and the government’s economic rehabilitation and stimulation measures worth 400 billion baht,” he said.
“Money will obviously enter the economic system in early August and the Thai economy in 2020 will decline slower at 3.5-5.5% instead of 8.8% as earlier anticipated.”
According to Mr Thanavath, normally about 600 billion baht was circulated in the economic system on a monthly basis. Lockdown measures reduce the amount by half. If more businesses are unlocked on May 17, the circulated money will rise by nearly 200 billion baht a month.
“That will stop the Thai economy from declining or let it bottom out. The Thai economy will pick up noticeably approximately in the second quarter of 2021,” he said. (TNA)
