A survey on people’s spending behavior at Lunar New Year has found that the amount of circulation during the period will likely reach the lowest level in 11 years, owing to the Covid situation and the heightened prices of many consumer products.
University of the Thai Chamber of Commerce President Asst. Prof. Dr. Thanavath Phonvichai said a Chamber Business Poll survey on spending behavior at Chinese New Year found that 39.627 billion baht will be circulated during the period this year. This figure would be an 11.82% decline from that of the previous year and the lowest figure in 11 years. Concerns about COVID-19 and the appreciation of product prices were attributed as the causes for the diminished spending. On average, the sample group in the survey plan to spend 4,726 baht per person to buy items for Chinese New Year rites and 963 baht per person for merit-making. Most respondents said they had no plan to travel during the Lunar New Year period.
According to Dr. Thanavath, the UTCC’s Center for Economic and Business Forecasting believes the overall Thai economy will gradually recover, albeit at a faster pace in the latter half of this year. He said the government needs to promote people’s confidence so they would spend money and issue measures to keep production costs manageable. The 4th phase of the Co-pay purchase subsidy program is expected to generate no less than 72 billion baht of circulation in the economy, while the re-activation of the Test & Go entry pathway for international tourists is also expected to positively contribute to the economy. Dr. Thanavath indicated that he expects the Thai GDP to expand by about 3.5% this year. (NNT)