The amount of monetary circulation during the Lunar New Year period will likely reach the lowest level in 11 years, owing to the COVID-19 situation and heightened prices of many consumer products as indicated by a recent survey on people’s spending behavior.
Asst Prof DrThanavathPhonvichai, president of the University of the Thai Chamber of Commerce (UTCC), said a Chamber Business Poll survey on spending behavior at Chinese New Year found that 39.627 billion baht will be circulated during the period this year. This figure would mark an 11.82% decline from that of the previous year and the lowest figure in 11 years. COVID concerns and the appreciation of product prices were cited as causes for the diminished spending. On average, the sample group surveyed planned to spend 4,726 baht per person to buy items for Chinese New Year rites and 963 baht per person for merit-making. Most respondents said they had no plans to travel during the Lunar New Year period.
According to DrThanavath, the UTCC’s Center for Economic and Business Forecasting believes the overall Thai economy will gradually recover, albeit at a faster pace in the latter half of this year. He said the government needs to promote people’s confidence so they would spend money and issue measures to keep production costs manageable. The 4th phase of the co-pay purchase subsidy program is projected to put no less than 72 billion baht into economic circulation, while the re-activation of the Test & Go entry pathway for international tourists is also expected to positively contribute to the economy. DrThanavath said he expects Thailand’s GDP to expand by about 3.5% this year.(NNT)
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