KR-ECI in January 2023 improved, driven by the Thai economic recovery, with Thai households’ improved perception towards income and employment

• The KR-ECI and 3-month Expected KR-ECI in January 2023 improved to 35.1 and 37.8, respectively, from the figures of 34.7 and 37.1 reported for December 2022. This was because the perception of households towards income and employment improved in line with Thailand’s continued economic recovery, driven by the tourism sector.
• KResearch conducted an additional survey on how households are coping with the high cost of living and found that 37.7 percent of surveyed households indicated that they are not spending on luxuries or unnecessary items, while 20.5 percent are minimizing energy consumption such as electricity. Other actions they are taking include avoiding new debts and earning more income/taking on additional work.
• Looking ahead, the KR-ECI will tend to improve in line with Thailand’s economic recovery, bolstered by the tourism sector, which will further boost domestic employment and income. Another key driver is the government’s tourism stimulus measures such as the fifth phase of the “We Travel Together” hotel subsidy scheme. However, the improvement of KR-ECI remains fragile amid a global economic slowdown that may impact the Thai economy, especially export-related industries, coupled with the persistently high living costs and limitations of government measures to subsidize such costs.