Consumers 'to keep purse strings tight despite stimulus'
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The government's economic stimulus plan is expected by many Thais to generate a clear recovery in the second quarter of next year, but not to boost consumption, as people are still worried about the rising cost of living and higher debt, according to the
“The government will need some time to wait for the economic recovery after introducing the stimulation plan, as consumers are still wary of their consumption and low export growth.
“The economy will this year grow only 1.5-1.7 per cent, while next year it will expand faster at 4-5 per cent,” Saowanee Thairungroj, president of the university, said yesterday.
A survey by the university with 1,272 responses found that almost 70 per cent of consumers believe the stimulus plan will rev up the economy in the future. However, the plan will not have an immediate impact on consumers, as most will still reserve their spending.
People are still concerned about the rising cost of living, stagnant incomes, higher debt and dropping crop prices. For this year, the university projects Thai exports retreating by about 1 per cent.
The survey also found that people have taken on more debt because incomes have not kept up with higher expenses. About 30 per cent of respondents are in debt to banks or loan sharks, compared with only 22 per cent in a July survey.
More people also owe more to underground lenders, as 44 per cent of people in October said they had to borrow from loan sharks, compared with 37 per cent in July.
People want the government to solve such debt problems and the rising cost of living as top priorities, followed by tackling the falling prices of farm commodities, taking care of people’s incomes, ensuring fair labour treatment and promoting fair access to quality education.
Most people are satisfied with the government’s plans to amend outdated rules and laws, control the cost of living, promote tourism, develop infrastructure, and help farmers by giving Bt1,000 per rai to small farmers.
