Consumer spending during the Loy Krathong festival is projected to be the highest in eight years, driven by higher confidence in the country’s economic prospects.
The latest survey by the University of the Thai Chamber of Commerce (UTCC) revealed spending during the annual full moon celebration, which falls on Nov 27, is expected to increase by 3.3% from the previous year to 10 billion baht.
Thanavath Phonvichai, president of the UTCC, said this year’s spending is considered a milestone, reaching the 10- billion-baht mark for the first time in eight years.
“This year’s festival is expected to be livelier than the previous year’s, as the majority of people surveyed believe the Thai economy will improve. Additionally, there has been an increase in various activities,” he said.
“However, people remain cautious about spending because of the high prices of goods.”
According to Mr Thanavath, average spending per person is estimated at 2,075 baht during the festival, up from 1,920 baht per person last year, with spending mainly on parties, travel and merit-making.
He said the university’s survey found most people expect the economy will recover and expand well in the second half of 2024.
“The economy has already bottomed out and is likely to continue consistently growing,” Mr Thanavath said.
“After experiencing a contraction of 6.1% in 2020 due to the challenges posed by the pandemic, Thailand’s economy returned to positive growth in 2021 at 1.5%. In 2022, it grew by 2.6%, and it is expected to grow by 2.4-2.5% this year.”
The National Economic and Social Development Council reported on Monday GDP grew by 1.5% year-on-year in the third quarter, decelerating from 1.8% in the second quarter.
The deceleration was attributed to slowing exports.
For the first nine months this year, the economy grew 1.9% from the same period of last year.