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14 Dec 2020

Thai Economy

November KR-ECI Bounced Back to Near Pre-COVID-19 Levels, Supported by Government Consumption Stimulus Measures

    • The KR-ECI improved for the fifth consecutive month in November 2020, standing at 41.0, which was almost on par with the pre-COVID level of 40.6 in January 2020, because households, especially those in the agricultural sector, were more optimistic about employment and income. The improvement was also attributable to higher purchasing power, supported by the government economic stimulus measures.  
    • The 3-month Expected KR-ECI came in at 41.1 in November 2020, rising slightly over-month to a level near the KR-ECI, suggesting that household confidence towards their future living conditions was moderate even though they were optimistic about the current living conditions. In addition, they were more concerned about debt repayments, expenses (excluding debt) and goods prices.  
    • KResearch views that the government measures, aimed at stimulating purchasing power, will help reinvigorate spending and red​uce household expenditures somewhat during the remainder of 2020. It is expected, however, that the Thai economy will experience numerous downside risks ahead, including the resurgence of COVID-19. Close attention must be paid to risks associated with the development of COVID-19 vaccines. In addition, the labor market will remain weak as the business sector cannot resume operations as usual. Therefore, various government measures are still necessary. The government recently renewed spending and tourism stimulus measures.​

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Thai Economy