Consumers becoming more confident in Thailand’s economic recovery: UTCC

University of the Thai Chamber of Commerce (UTCC) said on Friday that a survey of 2,238 respondents across the country showed that the CCI had risen to 49.4 in April from 48 in March.

The index showed a particular surge in two key aspects – job prospects and future income – rising to 52.0 and 63.6, respectively from March’s numbers of 50.9 and 62.5.

UTCC president Thanawat Phonwichai said on Friday that the respondents considered the increase in foreign tourists in April as a positive sign of recovery. The number of tourists to Thailand jumped sharply since late January after China removed its travel restrictions.

Thanawat said campaigns for the May 14 election also helped boost the economy as political parties rallying for votes across the country helped generate up to 60 billion baht.

Plus, he said, the promises made by electoral campaigns also helped boost people’s confidence, subsequently increasing their spending for about one to two months, he added.

Another factor contributing to the increase in CCI was the slight drop in fuel prices, which eased people’s worries about the cost of living, Thanawat said.

However, he also cautioned that the Thai economy would face negative factors such as rising electricity bills, global economic conditions, the ongoing Russia-Ukraine conflict, PM2.5 air pollution, and the Finance Ministry’s downward adjustment of the 2023 GDP estimate from 3.8% to 3.6%.

The UTCC's Centre for Economic and Business Forecasting estimated that Thailand's economy this year could expand by 3.5-4%, depending on political stability after the new government is formed, the recovery of the export sector and the trend of the global economy. It also believes that the economy will get a major boost by the tourism industry, especially in the fourth quarter.