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7 Jul 2022

Thai Economy

The KR-ECI fell to its lowest-ever level. Although the COVID-19 transition from pandemic to endemic will partly support employment, rising product prices, as reflected by the inflation rate which hit a 14-year high, will continue to pressure the KR-ECI.


  • The KR-ECI and 3-month Expected KR-ECI in June 2022 fell for the fourth consecutive month and to the lowest level since their inception at 30.8 and 32.9, from 31.2 and 34.0 reported for May 2022, although the perception of households towards income and employment improved in line with the additional relaxation of COVID-19 control measures – i.e. entertainment venues in provinces classified as green zones and blue “tourism-oriented” zones are allowed to reopen; Thailand Pass registration requirements are eased for inbound tourists. However, concerns about rising product prices, as reflected by the June inflation rate that hit a 14-year high, continued to pressure the KR-ECI to fall to a record low.
  • Another survey conducted by KResearch on income and employment shows that more than 41 percent of the households surveyed cited that their income and employment have returned to the levels seen before COVID-19, while more than 35 percent are earning less income due to fewer working hours. Another survey on which expenditure categories increased the most amid higher product and energy costs shows that of all household expenditures in energy, utilities and basic necessities increased the most (73 percent), suggesting that overall household purchasing power has yet to fully recover while necessary expenditures tend to increase.
  • KResearch views that households’ living conditions remain fragile although economic activity and household employment are set to improve following the relaxation of COVID-19 control measures. However, the prices of basic necessities such as cooking gas and public transport fares remain high, with the result that households are still worried about the rising cost of living amid ebbing purchasing power.

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Thai Economy