Latest news with #Thanavath
Bangkok Post
5 days ago
- Business
- Bangkok Post
Thai consumer confidence slips further
Thai consumer confidence dropped for a sixth consecutive month in July to its lowest level in 31 months due mainly to concerns over US tariffs, a lagging economy and government instability, a survey showed on Thursday. The index compiled by the University of the Thai Chamber of Commerce fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, it said. 'The confidence index shows no signs of recovery, with consumer purchasing power still subdued,' university president Thanavath Phonvichai told a press conference. 'The economy shows signs of stagnation and needs more stimulation,' he said, adding that the economy might grow by only 1.7% this year, after 2.5% expansion last year. While the United States has reduced its tariff on imported goods from Thailand to 19% from 36%, there are still uncertainties relating to US tariffs on transshipments via Thailand from third countries, Mr Thanavath said. 'What needs to be clearly defined is tariffs on transshipments. They must be explicitly outlined for businesses to adapt accordingly,' he said. Consumers were also worried about the instability of the government following the suspension of Prime Minister Paetongtarn Shinawatra pending a ruling in a case seeking her dismissal for her mishandling of a phone call with former Cambodian premier Hun Sen. 'The political situation remains unstable following the prime minister's suspension from duty, creating an unclear outlook and undermining confidence,' Mr Thanavath said.
New Straits Times
5 days ago
- Business
- New Straits Times
Thai consumer confidence hits lowest level in over two years
BANGKOK: Thai consumer confidence dropped for a sixth consecutive month in July to its lowest level in 31 months due mainly to concerns over US tariffs, a lagging economy and government instability, a survey showed on Thursday. The consumer index of the University of the Thai Chamber of Commerce fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said. "The confidence index shows no signs of recovery, with consumer purchasing power still subdued," university president Thanavath Phonvichai told a press conference. "The economy shows signs of stagnation and needs more stimulation," he said, adding that the economy might grow by only 1.7 per cent this year, after last year's 2.5 per cent expansion. While the United States has reduced its tariff on imported goods from Thailand to 19 per cent from 36 per cent, there are still uncertainties relating to US tariffs on transshipments via Thailand from third countries, Thanavath said. "What needs to be clearly defined is tariffs on transshipments. They must be explicitly outlined for businesses to adapt accordingly," he said. Consumers were also worried about the instability of the government following the suspension of Prime Minister Paetongtarn Shinawatra from duty pending a case seeking her dismissal, Thanavath said. "The political situation remains unstable following the prime minister's suspension from duty, creating an unclear outlook and undermining confidence," he said.
Business Times
5 days ago
- Business
- Business Times
Thai consumer confidence hits lowest level in over two years
[BANGKOK] Thai consumer confidence dropped for a sixth consecutive month in July to its lowest level in 31 months due mainly to concerns over US tariffs, a lagging economy and government instability, a survey showed on Thursday (Aug 7). The consumer index of the University of the Thai Chamber of Commerce fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said. 'The confidence index shows no signs of recovery, with consumer purchasing power still subdued,' university president Thanavath Phonvichai told a press conference. 'The economy shows signs of stagnation and needs more stimulation,' he said, adding that the economy might grow by only 1.7 per cent this year, after last year's 2.5 per cent expansion. While the United States has reduced its tariff on imported goods from Thailand to 19 per cent from 36 per cent, there are still uncertainties relating to US tariffs on transshipments via Thailand from third countries, Thanavath said. 'What needs to be clearly defined is tariffs on transshipments. They must be explicitly outlined for businesses to adapt accordingly,' he said. Consumers were also worried about the instability of the government following the suspension of Prime Minister Paetongtarn Shinawatra from duty pending a case seeking her dismissal, Thanavath said. 'The political situation remains unstable following the prime minister's suspension from duty, creating an unclear outlook and undermining confidence,' he said. REUTERS
Bangkok Post
09-07-2025
- Business
- Bangkok Post
Export value could take B200bn hit
Thailand is expected to lose roughly 200 billion baht in export value this year if the US imposes tariff rates of 25-36% on Thai products, according to the University of the Thai Chamber of Commerce (UTCC). Thanavath Phonvichai, president of the UTCC, said Thailand still has a chance to negotiate a more favourable tariff rate with the US, potentially down to 20%, in line with Vietnam's rate, before the tariffs are implemented on Aug 1. However, reaching a tariff agreement remains uncertain. Moreover, if there is political unrest later this year such as a parliamentary dissolution and the government is unable to allocate the economic stimulus budget, GDP growth could be reduced by one percentage point. This scenario could lead to overall economic growth of less than 1% for the year, which is lower than the previous projection of 1.7%. He said that if the 25-36% tariffs remain in place for one year, it will affect about 400-600 billion baht in exports. The UTCC also revealed the consumer confidence index for June, which fell to 52.7, a 28-month low, with expectations for further declines until the end of the year. Mr Thanavath said this decrease was attributed to concerns about the stability of the Thai government, ongoing political uncertainty, and the US trade war. Despite the government's implementation of economic stimulus measures and the Bank of Thailand's decision to lower the policy interest rate to 1.75%, consumers still perceive the economic recovery as sluggish, especially as they find it difficult to access credit. In terms of business sentiment, the June survey of chamber members showed a fourth straight month of decline, reaching the lowest level in 30 months at 46.7. Businesses expressed concerns over domestic political issues, US trade barriers, a slow tourism recovery, and broader economic vulnerabilities. The employment level index has dropped below 40, indicating a decline in labour market confidence. The business community is urging the government to fast-track economic stimulus initiatives, push for tariff negotiations with the US to lower rates to below 36%, improve credit access, and take preventive measures to address issues at the Thai-Cambodian border.
Business Recorder
12-06-2025
- Business
- Business Recorder
Thai consumer confidence hits 27-month low in May over U.S. tariffs
BANGKOK: Thai consumer confidence dropped for a fourth consecutive month in May, falling to its lowest level in 27 months, due to concerns over U.S. tariffs and a sluggish economy, a survey showed on Thursday. The consumer index of the University of the Thai Chamber of Commerce fell to 54.2 in May from 55.4 in the previous month, the university said in a statement. 'The current situation clearly indicates that from the consumers' perspective, the economy is not good, with no signs of recovering,' university president Thanavath Phonvichai told a press conference. Thailand will face a 36% U.S. tariff if it fails to negotiate a reduction before a moratorium expires in July. A tariff of 10% has been set for most nations while the moratorium is in place. Southeast Asia's second largest economy has yet to begin negotiations with the United States. Thai consumer confidence hits 7-month low in April due to US tariffs 'At this time, it is unclear whether Thailand will be able to negotiate successfully in time,' Thanavath said. The estimated damage to the economy from lost exports and tourism revenues will be around 150 billion to 200 billion baht ($4.6 billion-$6.2 billion), he added. Last month, Thailand's state planning agency slashed its growth forecast range by one percentage point to 1.3% to 2.3% this year, warning that the impact of the tariffs would last for two years.
