The Thai economy in 2024 is still recovering slowly and growing below expectations. The Bank of Thailand has lowered its GDP forecast for 2023 and 2024 to 2.4% and 3.2%, respectively. Tourism, which was a major driver of the Thai economy before the pandemic, is still a concern. What causing even more concern is the consumer confidence of the Thai people though.

Consumers are not confident about whether the economy would recover quickly, especially when the current political situation became uncertain, the university said. The consumer index of the University of the Thai Chamber of Commerce fell to 60.5 in May from 62.1 in April, the university said in a statement.

Thai courts will convene on a trio of politically charged cases in July 2024 week, including one that could potentially lead to the prime minister’s dismissal, increasing the prospect of more government instability in the Southeast Asian country.

If for some reason consumer confidence declines, consumers become less certain about their financial prospects, and they begin to spend less money; this in turn affects businesses as they begin to experience a decrease in sales.

Source: The University of Thai Chamber of Commerce / June 2024.