The government’s campaigns to stimulate the economy have paid off with an increase in the TCC Confidence Index in October, indicating that the private sector is now more confident in the country’s economy.
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The University of the Thai Chamber of Commerce (UTCC) has released the Thai Chamber of Commerce Confidence Index (TCC-CI) for October 2020, which has reached 33.2 points, somewhat higher than the previous month’s score of 32.5 points.
The university’s Center for Economic and Business Forecasting (CEBF) says the increase in confidence in the private sector is fueled by the government’s three key economic stimulation campaigns, projected to generate 150 billion baht in economic activity, and add to the expected better-performing economy.
The Bank of Thailand’s Monetary Policy Committee, earlier adjusted the forecast for this year’s economy from contracting 8.5 percent to 7.7 percent, following the easing of COVID-19 measures, and the start of country’s reopening.
The CEBF says however the private sector remains cautious about the possibility of a second wave of infections in the country, along with a declining export sector, and the removal of Thailand from US GSP trade benefits.
They suggest the government take more measures to bring the spending rate of Thai people back to normal; further help the export business; improve confidence among investors, and maintain the stability of the Thai currency.
The UTCC President and CEBF chief advisor Thanawat Polvichai has projected Thai economic output this year will shrink by 6 to 6.5 percent.
He said the escalation of current political protests is a factor that can affect the economy, as well as changes to the Prime Minister or parliament’s dissolution, as such developments will cause the public to immediately restrain spending, which could cause the national economy to take a deeper dive. (NNT)
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