Loy Krathong spending set to see surge

Loy Krathong spending set to see surge

Colourful 'krathong' made of bread are available for the upcoming Loy Krathong festival, which is expected to spur consumer spending this year thanks largely to the large number of tourism activities planned. PATIPAT JANTHONG
Colourful 'krathong' made of bread are available for the upcoming Loy Krathong festival, which is expected to spur consumer spending this year thanks largely to the large number of tourism activities planned. PATIPAT JANTHONG

Consumer spending during the Loy Krathong festival is expected to be more active this year, especially in Greater Bangkok, as confidence in the country's overall economic prospects starts recovering following a slew of government stimulus measures.

The latest survey by the University of the Thai Chamber of Commerce (UTCC) has revealed spending during the annual celebration on the full-moon night of the 12th lunar month, which this year falls next Wednesday, is expected to grow by 2.5% to an estimated 11.4 billion baht.

Last year, spending was estimated at 11.1 billion baht, up by 2.37% from last year.

Spending in Greater Bangkok is estimated to reach 4.08 billion baht, up by 3.8%.

Upcountry spending will amount to 7.42 billion baht, a rise of 3.1%.

"This year's sentiment is much more lively compared with last year and likely to be the most active in the past three years," said Thanavath Phonvichai, vice-president for research.

"Most people see the economy has already bottomed out."

The UTCC yesterday raised this year's economic growth forecast to more than 3% from an earlier projection of 2.8% to 3.1% growth thanks to multiplier effects from the government's recent stimulus.

The stimulus measures include lending by Village Funds, funding of tambon projects worth 5 million baht each, investment in small local development projects, regulatory changes to stimulate the property sector and soft loans for small and medium-sized enterprises. 

The National Economic and Social Development Board (NESDB) on Monday revised its forecast to 2.9% growth from a range of 2.7% to 3.2% forecast in August.

Last year, Thailand reported 0.9% growth.

The higher-than-expected number of inbound tourists, forecast to exceed 30 million, and the government's stimulus packages will help to offset negative effects from falling exports and agricultural production, which are likely to decline more than anticipated for the full year.

The NESDB predicts export value will contract by 5% this year.

But private consumption and total investment will grow by 2% and 4.6%, respectively.

The government's planning unit projects the economy will grow by 3-4% next year.

Growth will be supported by the acceleration of state expenditure and investment, positive results from the stimulus packages and a gradual recovery in the global economy and export prices.

The depreciation of the local currency will help to improve export value in baht terms and enhance revenue and liquidity for exporters and a gradual recovery in farm prices, in line with the recovery of the global economy.

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