Consumer confidence in Thailand surged for the third consecutive month in December, achieving its highest point in six months, according to a survey released on Tuesday. This optimism was primarily driven by government stimulus measures and a robust tourism sector.
The University of the Thai Chamber of Commerce reported that its consumer confidence index climbed to 57.9 in December, up from 56.9 in November. “Consumers are beginning to believe in an economic recovery, contingent on continued government economic stimulation,” the university noted.
Key factors bolstering confidence included government subsidies for rice farmers, financial aid for the elderly, and tax incentives designed to boost consumption. A significant component of this support was the government’s approval of a 40 billion baht ($1.15 billion) distribution to 4 million senior citizens through a “digital wallet” initiative.
The influx of foreign tourists also significantly contributed to economic vitality. In 2024, Thailand welcomed 35.5 million foreign visitors, marking a 26.3% increase from the previous year. This growth is noteworthy, considering Thailand’s pre-pandemic record in 2019 of nearly 40 million tourist arrivals.
Finance Minister Pichai Chunhavajira expressed optimism last week, aiming for economic growth exceeding 3% this year, building on an expected 2.7% to 2.8% growth in 2024. Tourism continues to be a pivotal force in driving the economy of Southeast Asia’s second-largest market.
