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15 Jan 2020

Thai Economy

Households have worse outlook on their well-being for the next 3 months, reflecting concerns over the overall Thai economic sentiment

      • KR-ECI in December 2019 stood 42.4, up from 42.0 in November 2019.  Households became less worried about their income and employment, partly due to seasonal factors, namely, the annual pay raise of private companies. Additionally, prices of various agricultural produce increased, boosting the farmers' income. Despite the rise in KR-ECI in December 2019 when compared to the previous month, the index was considerably lower than 46.0 registered in the same period of the previous year.
      • The 3-month Expected KR-ECI - surveyed in December 2019 – stayed at 42.2, barely changed from 42.1 recorded in November 2019. Thai households remained worried about their income and employment as well as their debt burden in the next three months. Moreover, the fact that the 3-month Expected KR-ECI stayed lower than the level of the current index reflects households' concerns over the overall Thai economic performance in the future.
      • KResearch views that the Thai household economic conditions in 1H20 remain fragile amid various risk factors, namely, a steady decrease in domestic employment and water shortage for consumption and agricultural and industrial use due to the long dry season, which has continued from the previous year. Meanwhile, dust pollution may increase the healthcare expenditure burden of Thai households. To ease people's burden on cost of living, the government launched several programs such as short-term measures, namely, the reduction of the Purple Line's fares and the expressway toll fares for the users o​f the Easy Pass, and long term measures, namely, the minimum wage hike in January 2020, which should somewhat ease people's spending burden. ​

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Thai Economy