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Bangkok Post
Bangkok Post
Business

Omicron fears hit Thai consumer confidence

People shop for gifts at Sampeng Market in Samphanthawong district, Bangkok. (File photo: Bangkok Post)

The country's private consumption slowed in January month-on-month because of concern about the surge in Omicron infections, says Fiscal Policy Office deputy spokesman Wuttipong Jittungsakul.

The consumer confidence index fell to 44.8 in January from 46.2 in December 2021.

Last month, the economy gained support from private investment and the recovering tourism sector, he said.

In January the collection of value-added tax, which reflects consumer consumption, expanded 17.4% year-on-year but declined 9.3% month-on-month.

The purchase of motorcycles in January rose 7.2% year-on-year, but fell 9.9% month-on-month.

Sales of passenger cars jumped 45.1% year-on-year and 14.3% month-on-month.

The sale of commercial cars, which reflects private investment, increased 17.9% year-on-year in January and 18% month-on-month.

Farmers' income expanded 3.8% year-on-year in January, but dipped 4.4% month-on-month.

Cement sales, which reflect investment in the construction sector, edged up 2.6% year-on-year and 2.5% month-on-month.

Collection of property transaction tax grew 3.9% year-on-year, but dropped 2.4% month-on-month.

The number of international tourists in January was 133,000, while local tourists tallied 15.4 million. The latter was a rise of 127% year-on-year and 15.5% month-on-month.

Mr Wuttipong said the overall economy looks sound, despite pressures from rising product prices.

Headline inflation in January stood at 3.23%, while core inflation was 0.52%.

The public debt-to-GDP ratio in January was 59.6%, below the 70% ceiling allowed by law.

On Thursday, Finance Minister Arkhom Termpittayapaisith projected Thailand's public debt will rise to 62% of GDP in fiscal 2022, from 59.6% in December 2021.

Mr Arkhom said maintenance of the debt level at 62% depends on whether the country posts economic growth of 4% this year.

The National Economic and Social Development Council projects economic growth this year in a range of 3.5% to 4.5%, driven by rising demand, a recovery in domestic tourism, strong exports and high public investment.

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