Record Loy Krathong spending won’t offset economic problems: UTCC
The University of the Thai Chamber of Commerce (UTCC) said that while spending during the Loy Krathong festival is expected to exceed 10 billion baht, it is unlikely to have a significant impact on the economy.
Thanawat Polvichai, president of the UTCC's Centre for Economic and Business Forecasting, told the press on Wednesday that though spending during the festival is expected to hit a nine-year high, the underlying economic conditions will remain challenging.
He said factors such as high inflation and economic uncertainty have led to cautious consumer behaviour, with people preferring to spend more on essential goods and services.
The government’s recent economic stimulus measures, including cash subsidies, have had a limited effect and the recent floods have further dampened consumer confidence, he said.
The UTCC forecasts a 2.6-2.8% economic growth rate for this year, driven by the recovery of the export sector and easing inflationary pressures. For 2025, the centre predicts a 3% growth rate, with the potential to reach 3.5% if the government implements additional stimulus measures, such as the second phase of the digital money scheme.
However, the UTCC said it is important for the government to address structural issues and implement long-term policies to sustain economic growth and improve the well-being of Thais.
