September KR-ECI remained static from the previous month. Flooding presents risk to household income and spending

• In September 2022, the KR Household Economic Condition Index (KR-ECI) and 3-month Expected KR-ECI stood at 33.9 and 35.2. Households were more optimistic towards prices of many product categories, with the exception of foods and beverages, as energy costs began to decline. Additionally, heavy precipitation has resulted in flooding and caused damage to agricultural land in many areas, triggering increased concern among households about their income and employment, including expenses that may increase in the aftermath of the inundations. Another survey conducted by KResearch, September 21-27, 2022, on the impact of flooding shows that 19.2 percent of households already incurred additional expenses of more than THB5,000/family.
• Looking ahead, improvements in the economy and living conditions of households will likely be inhibited by several downside risks, including high prices of goods and commodities, especially energy although they have begun to decline. Meanwhile, close attention must be paid to flooding across the country as related losses to agricultural outputs and households have begun to be seen. Such losses may pressure household purchasing power further. The government’s economic stimulus measures such as the co-payment and “We Travel Together” programs will end on October 31, 2022. However, the relaxation on travel restrictions aboard will likely help bolster the number of international tourist arrivals in Thailand, and this will in turn help generate more income and support employment in the country.  New stimulus measures to be implemented by the government during the second half of 2022 such as tax breaks and are set to support the economy, as well.