NationThailand-Sept 26
This year’s vegetarian festival is expected to see around 42 billion baht circulating in the economy, highlighting a weak recovery in Thailand, according to a recent report released on Thursday by the University of the Thai Chamber of Commerce. Thanawat Polvichai, advisory chairman of the Centre for Economic and Business Forecasting revealed that a survey of 1,250 respondents indicated a projected festival spending of around 42.2 billion baht, a 5.2% increase over the previous year, despite a prior cash flow of 40.1 billion baht. Notably, 66% of those surveyed stated they would not go on a vegetarian diet, citing high costs, poor taste, and a struggling economy, while 34% planned to eat vegetarian meals for merit-making or personal preference. The survey found that 81.2% of respondents intended to consume vegetarian food throughout the festival, with most purchasing in-person. Thanawat commented that the increase in spending was mainly due to rising product prices, with this year’s total comparable to figures from 2015. He noted that while spending power appears to be returning, consumers remain cautious. Additionally, 62.2% of respondents expect raw material prices to rise, and only 19% plan to travel to sacred sites for merit-making. When assessing overall spending behaviour during the festival, many indicated it would stay the same or decline slightly due to inflation. Looking ahead, 75.1% of respondents believe Thailand’s economy will improve in the latter half of 2024, aligning with expectations that consumer shopping will normalize. Thanawat noted that while a recovery is underway, it remains moderate as public confidence remains low, with differing recovery rates across sectors. He projected that despite challenges, economic growth could fluctuate between 3.0-3.5% this year, supported by strong exports and an influx of foreign tourists. Read more at: https://www.nationthailand.com/business/economy/40041835
