Chamber of Commerce Signals Positive Recovery in Consumer Confidence for First Time in 11 Months

Thanawat Phonvichai, Rector and Chair of the Economic and Business Forecasting Center at the University of Thai Chamber of Commerce, revealed that the Thai Chamber of Commerce confidence index improved across all indicators for the first time since February 2024. Consumer confidence in January 2025 reached 52.8, improving from December 2024, partly due to easing tensions along the Thai-Cambodian border and increased political negotiations. The election in January 2025 generated economic momentum, with Chinese New Year spending increasing 5% and Valentine's Day expenditures rising 7%. This reflects growing public optimism about the potential economic stimulus from the new government, particularly through promised cash handout programs like the 'Half-Half Plus' initiative. While confidence indices are showing positive signs, Thanawat noted that indices remain below normal levels, indicating continued consumer caution about economic recovery. The World Bank projects Thailand's GDP growth at 1.6% for 2025, consistent with most analytical projections. The first quarter of 2025 is expected to see economic growth between 0.8-1.2%, with potential growth of 2.2% anticipated in 2026.