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5 Sep 2023

Thai Economy

KR-ECI was stable in August 2023 amid uncertainties surrounding the Thai economy Clarity on the government’s formation may lead to an improved outlook towards the economy and household livelihoods going forward

  • In August 2023, KR-ECI and 3-month Expected KR-ECI stabilized at 36.2 and 38.9, respectively, compared to the previous month. Households were less concerned about income and employment, with signs of improvement seen in other sectors apart from services and agriculture. However, households were still worried about product prices and debt burdens due to the persistently high cost of living and lending rates.
  • KResearch conducted an additional survey on households’ plans to incur new debt in the next 3 months. The results show that most households (78.8 percent) have no plan to incur new debt. Meanwhile, among respondents expected to incur additional debt, most of them (33.0 percent) require loans for liquidity improvement, followed by loans for business operations, purchase of durable goods such as vehicles, and purchase of home/residence, respectively.
  • Looking into the remainder of 2023, KR-ECI is expected to improve in line with the country’s economic recovery and tourism sector. Plus, political clarity may lead to a positive outlook towards the economy and household livelihoods. However, any potential improvement remains fragile amid challenging factors such as drought caused by the El Niño weather pattern, and global economic slowdown, particularly in the Chinese economy.

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Thai Economy