Confidence underpins retail recovery

Consumer spending will continue to grow, albeit at a slower pace, as high indebtedness is a factor. By Fitch Solutions

Consumer spending in Thailand will post solid growth over 2022, with real household spending (based on 2010 prices) projected to grow by 4.6% year-on-year.

This is a slowdown from the 7% year-on-year growth estimated for 2022, when growth was boosted by low base effects from the 11.7% year-on-year contraction in 2020 and flat growth of 0.3% in 2021.

We forecast real household spending to rise to 8.5 trillion baht over 2022.

Consumer spending growth will come as the wider Thai economy recovers and growth figures return to a more stable and medium-term trajectory. Although inflationary forces will remain elevated this year, real income growth for Thai consumers will give households greater propensity for spending.

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