Display mode (Doesn't show in master page preview)

10 Jun 2021

Thai Economy

Households are still concerned about COVID-19 while dwindling savings have begun to affect their spending behavior

  • ​​​The relaxation of COVID-19 containment measures around mid-May and gradual implementation of the government's relief measures helped push the KR-ECI up slightly to 37.3 in May, though remained low, compared to the 37.0 reported for April. Meanwhile, the 3-month Expected KR-ECI for May remained static from that recorded in April at 39.4, suggesting that households were still concerned about the future cost of living amid the third wave of COVID-19 that emerged in early April 2021. They were also particularly anxious about savings, which had begun to decline substantially from the previous month.  
  • An additional survey conducted by KResearch on household spending in May found that most households began to avoid or engage in fewer activities that incur costs, such as dining out, shopping at supermarkets and ordering foods via applications. This implies that their fragile financial positions have forced them to be more careful about spending.   ​

  • Looking ahead, economic conditions and the cost of living for households will rest with the COVID-19 pandemic. Recoveries in various sectors will also hinge on the speed of the government's vaccination drive, which began on June 7, 2021. An accelerated inoculation rate is bound to help restore household and business confidence more quickly. Nevertheless, relief measures are still imperative in elevating the related economic impact on households and businesses, given there is still no end in sight to the COVID-19 pandemic. 

View full article

Thai Economy