In Thailand, consumer confidence has experienced a continuous decline for the fifth consecutive month, reaching its lowest level since August of last year in July. This drop is attributed to apprehensions surrounding a sluggish economic recovery, escalating living costs, and political instability, as indicated by a survey released on Tuesday.
According to a statement from the University of the Thai Chamber of Commerce, the consumer index dropped to 57.7 in July from 58.9 in the prior month. The survey reported that consumers expressed worries regarding potential political unrest and the gradual economic recuperation, which lacked evident stimulus measures.
The looming verdicts from the Constitutional Court further contribute to the unease among consumers. The court is set to announce its decisions on Wednesday regarding a case seeking the dissolution of Move Forward, the primary opposition party in parliament.
Additionally, a verdict concerning Prime Minister Srettha Thavisin’s dismissal over a cabinet appointment issue will be delivered on August 14. Srettha has refuted any allegations of misconduct.
The potential removal of Prime Minister Srettha has the capacity to thrust Thailand into uncertainty, necessitating the selection of a new premier by parliament. This situation could potentially lead to the Pheu Thai Party, led by Srettha, facing off against coalition partners, resulting in a probable restructuring of the governing coalition, cabinet, and policies.
The University of the Thai Chamber of Commerce suggested that enhancing consumer confidence might be achievable if the government expedited budget allocations and implemented an economic stimulus plan targeting households in the final quarter of the year.
