No big splash for New Year
Consumer spending for Chinese New Year is projected to grow only 2.56 per cent, the slowest in six years, because of the recent floods.
“Consumers will continue to preserve their spending during the special occasions in the first quarter of this year until they have more confidence in stronger economic growth in the next couple of months,” Thanavath Phinvichai, director of the Economic and Business Forecasting Centre at the University of the Thai Chamber of Commerce, said yesterday.
This year people plan to spend Bt40.14 billion for the festival, barely up from Bt39 billion last year, according to an opinion survey with 1,200 respondents.
The celebrations will play a minor role in stimulating spending as people still have weak faith in the economy.
Without the flood, Chinese New Year spending would have risen 7 per cent to Bt42 billion.
Saowanee Thairungroj, president of the university, said consumers feel that they will bear a higher cost burden under the government’s policy to raise gas prices. The survey showed that almost half of respondents did not agree with the government’s plan to increase the prices of liquefied petroleum gas and natural gas for vehicles. To ensure a minimal impact on consumers, the prices should be adjusted gradually, he said.
Consumers also expect higher prices of foods and goods during the festival and throughout this year.
The new commerce minister should urgently tackle the rising cost of living as a top priority, he added.
