Consumer spending remains far from improved in the first half of the year as the gloomy export outlook weighs on economic growth.
Overall spending power has reached the most critical level in the past five years, said Boonsithi Chokwatana, chairman of consumer goods conglomerate Saha Group.
"Consumer spending in the past few months has been a source of concern because the export value of farm products fell sharply due to the strong baht," Mr Boonsithi said.
“The situation may get worse in the second half unless the government moves quickly to rein in the baht to 34 [to the US dollar] from an of average of 31 now.”
Apart from agriculture, the textile sector has also felt the pinch of a strong baht.
Saha Group, which engages in all aspects of textiles from downstream to upstream, is heavily affected by the baht's strength, he said, adding the group has already scaled down its textile business.