New Year spending is anticipated to contribute 109 billion baht to the Thai economy, though cautious consumer behavior persists as the economic recovery remains incomplete, states the University of the Thai Chamber of Commerce (UTCC).
A UTCC survey indicates a lively consumer spending period for the forthcoming New Year season. An expected 109 billion baht in economic circulation marks a 3.2% growth, signaling a continued but slow economic revival in Thailand.
The survey, conducted from December 16 to 21, included 1,300 participants across the country.
Despite positive predictions, Thanavath Phonvichai, president of the UTCC, noted that many consumers remain reluctant to spend freely, sensing only modest economic improvements.
This caution is reflected in the consistent volume of goods purchased compared to the previous year.
Sauwanee Thairungroj, an advisor to the UTCC Council, mentioned that Thais are gearing up for personal expenditures such as parties, religious donations, and purchases of clothing, shoes, and gifts.
This season’s consumer expenditures are categorized into travel and other activities.
Projected travel expenditures are set to reach 51.4 billion baht, with 5.47 billion baht allocated for international travel and 45.9 billion for domestic excursions.
Expenditures on other activities are forecasted at 57.8 billion baht, covering durable and consumer goods, parties, and religious donations.
Top spending choices include gift baskets (26.5%), hosting parties, offering cash gifts, and buying alcoholic drinks.
Regarding financing, the survey revealed that 47% of participants intend to use their salaries or regular income, with the remainder tapping into savings.
The rise in savings usage from 37.4% to 45.6% suggests many are finding their regular income inadequate for their needs.
“We expect the economic recovery in the first and second quarters of 2025,” stated Mr. Thanavath.
However, he expressed concerns about potential political disruptions affecting the economy, particularly if the dissolution of parliament delays the approval of the 2026 fiscal year budget.
He further suggested that if economic stability is achieved by the second quarter, a gradual VAT increase to 8% might be necessary as part of tax restructuring to accommodate Thailand’s aging population.
