BANGKOK- Thai consumer confidence fell for a second straight month in April, dented by a slow economic recovery and higher living costs, a survey showed on Wednesday.
The consumer index of the University of the Thai Chamber of Commerce dropped to 62.1 in April from 63.0 in March, the university said in a statement.
Consumers were increasingly worried about a global economic slowdown, climbing energy prices and a prolonged conflict in the Middle East, putting downward pressuring on the Thai economy, it said.
Opportunity for work and domestic politics were also contributing factors to the drop in confidence.
However, the university said some confidence could be restored after budget measures to stimulate growth are introduced in the second half of 2024.
Thailand’s economy is expected to grow 2.2 percent to 2.7 percent this year, down from a previous forecast of 2.8 percent to 3.3 percent due to a slow export recovery, a leading joint business group said last week.
Exports, a key driver of the Thai economy, are now projected to increase 0.5 percent to 1.5 percent this year compared with a rise of 2 percent to 3 percent seen earlier, said the Joint Standing Committee on Commerce, Industry and Banking, which includes representatives from those sectors.
In the first three months of 2024, exports fell 0.2 percent year-on-year, commerce ministry data showed.
Southeast Asia’s second-largest economy grew 1.9 percent last year, lower than 2.5 percent growth in 2022, lagging regional peers as it confronts high household debt and borrowing costs alongside China’s slowdown.
Last week, the finance ministry reduced its 2024 economic growth forecast to 2.4 percent from 2.8 percent, but said growth could still reach 3.3 percent if the government’s 500 billion baht ($13.5 billion) household stimulus plan launches in the fourth quarter as planned.
The tourism sector, also a important driver of growth, is expected to see 35 million foreign arrivals this year, unchanged from a previous forecast, the business group said.
“Tourism is a factor that is clearly recovering,” Kriengkrai Theinnukul, chair of the Federation of Thai Industries, told a media briefing.
The government is aiming for a record of 40 million foreign visitors this year. From Jan. 1 to May 5, Thailand received about 12.6 million foreign visitors, up 39 percent year-on-year, with Chinese tourists at about 2.5 million, government data showed.
