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10 Jul 2020

Thai Economy

Households have better outlook on their well-being over the next 3 months – first time in 7 months - reflecting the worst is now over


  • KR-ECI in June 2020 stood 36.0, maintaining a similar level to 36.1 in May 2020. Over the previous month, the government has exercised further relaxation of preventive measures on activities and businesses in the yellow band (Phase 3) and the red band (Phase 4), as well as the revocation of the decree that prohibits people from leaving their homes (lifting of curfew). As a result, a majority of economic activities has resumed operations, allowing income and employment within Thai households to gradually increase from the level in May 2020. Meanwhile, Thai households have incurred greater financial burden in June 2020 from rising prices of goods, especially in energy and public utilities. Certain households also bear additional expenses that are related to the education of their children prior to the start of new school semesters on July 1, 2020.
  • The 3-month Expected KR-ECI - surveyed in June 2020stayed at 37.4, showing signs of improvement from 35.9 recorded in November 2020. For the first time in 7 months, the KR-ECI for the next three months is found to be higher than the current economic condition index. This turnaround suggests the perception of households towards economic conditions in 3Q20 will continue to improve, going forward.
  • KResearch views that the Thai household economic conditions in 2H20 remain extremely fragile, even though the government has already issued relief measures on all types of economic activities/businesses. Economic recovery is still expected to require some time, in light of the severity of the ongoing COVID-19 situations abroad. More than ever, the Thai government is expected to facilitate a quicker recovery and sustain the domestic business sector – particularly SME operators, who continue to play a crucial part in the employment of the Thai workforce and in maintaining the purchasing power of Thai households.​

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Thai Economy