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9 Oct 2020

Thai Economy

An Uptick seen in September KR-ECI, thanks to Government’s Economic Stimulus Measures, but Still Below Pre-Covid-19 Levels


The KR-ECI in September 2020 improved slightly over that reported for August 2020, implying that Thai households were more optimistic about their living conditions. The 3-month Expected KR-ECI also increased in alignment with the gradually recovery seen in economic activities after the government lifted lockdown restrictions and introduced a serried of measures to stimulate tourism and domestic purchasing power. However, the KR-ECI and 3-month Expected KR-ECI were still below 50 and pre-COVID-19 levels, suggesting that economic conditions and living conditions of households have not returned to normalcy yet.   
Components of the KR-ECI also show that Thai households were more concerned about their purchasing power in September 2020 and over the next three months due to the impact of coronavirus (COVID-19) on income and employment. In addition, they were still anxious about debt repayments. Another survey conducted by KResearch shows that a majority of Thai households intended to participate in phase 2 of the Bank of Thailand’s relief measure for retail borrowers.   
KResearch is of the view that the resurgence of COVID-19 in many countries continues to generate uncertainties over the Thai economic recovery. Such uncertainties have dampened employment, purchasing power and debt servicing ability of Thai households. However, the government’s economic stimulus measures, especially those aimed at stimulating domestic purchasing power, will likely help support household spending during 4Q20. 


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Thai Economy