Consumer confidence in Thailand reaches new low amid rising costs, political uncertainty


(MENAFN) Consumer confidence in Thailand has plummeted to its lowest level since September 2023, driven by escalating living costs and political turmoil linked to a lawsuit seeking the prime minister's impeachment, according to an economic report released on Thursday. The University of the Thai Chamber of Commerce's consumer confidence index dropped to 58.9 points in June, down from 60.5 points in the previous month, marking the fourth consecutive month of decline.

The sub-index measuring consumer economic confidence also fell, reaching 52.6 points in June compared to 54.3 points in May. Thanavat Boonvichai, president of the University of the Thai Chamber of Commerce, highlighted in a press briefing that rising retail diesel prices have exacerbated concerns about the increasing cost of living in the country. To counteract these challenges and stimulate economic growth, Thailand needs to implement economic stimulus packages and boost public spending in the third quarter of the year. Without such measures, the economy is projected to grow by only 2-2.5 percent in the third quarter and 3-4 percent in the final quarter, with an annual growth rate of 2.5 percent for 2024.

Investor confidence has also been shaken by the ongoing political and economic instability. A report from the Thai Capital Market Association, released on Wednesday, revealed a decline in investor confidence over the past month. The investor confidence index fell to 82.89 points in June from 100.72 points in May. Bloomberg News Agency reported that the main Thai stock index continued its downward trend for the third consecutive month in June, as the Constitutional Court deliberates cases against Prime Minister Srita Thavisin and the "Move Forward" Party, Thailand's largest opposition party.

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