BANGKOK- The University of the Thai Chamber of Commerce (UTCC) has forecast there will 124 billion baht in circulation during the upcoming Songkran festival.
Director of the UTCC Center for Economic and Business Forecasting Thanawat Polvichai cited a recent survey that expected the water festival to be lively this year.
The estimated cash flow for Songkran in 2016 is the highest in three years, thanks to the government’s tax deduction scheme. It is also expected to increase from the year before by 4.5%.
More than 60% of respondents will travel, spending an average of 4,600 baht. Those planning to attend parties will spend an average of 4,281 baht per person, while those looking to make merit will spend 2,600 baht per person.
However, Mr. Thanawat added that the drought crisis still poses a risk to consumer spending. He claimed that without the water shortages, consumer spending would grow 5-7% during the festival.