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11 Nov 2022

Thai Economy

KR-ECI remained static in October. Households were still concerned about expenses, income and, employment, plus future savings due to the impact of flooding in many provinces

  • In October 2022, despite slower growth seen in the inflation index, households were still concerned about product prices. The impact of extensive flooding in the previous month also triggered concern among households about income and employment. As a result, the KR-ECI remained steady at 33.8. However, the 3-month Expected KR-ECI improved slightly to 35.7, supported by the fact that households were more optimistic about employment as tourism is projected to recover gradually ahead.
  • KResearch has conducted another survey on the impact of flooding since September 2022. The poll conducted in October shows that 64.3 percent of the households surveyed have incurred additional expenses of over THB5,000/household, against the 19.2 percent growth in additional expenses reported for September. Affected households were largely in the farming sector. Additionally, 43 percent of the respondents assessed that losses caused by the impact of flooding are higher than their monthly income, meaning their savings and debts will be affected.
  • Looking ahead, improvements in the economy and living conditions of households will continue to be plagued by a number of key risks. Although the government has implemented a number of measures to alleviate the rising costs of living for households such as freezing of electricity rate, persistent volatility in energy costs will likely undermine public subsidies in the future. Additionally, the impact of flooding may affect expenses, income, employment, and future savings of households. However, the year-end high season may help improve the economy and living conditions of households. Close attention must be paid to the government economic stimulus measures that are expected to be clearer in November 2022 such as tax deductions, plus spending and tourism stimulus programs.   

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Thai Economy