The ability to develop of Thailand is achieving greatly since the last four decades. This country isn’t a low income one anymore since the last ten years. Bangkok consumer spending is impressive and high which makes the population enter the new level as middle income class.
Thailand Economic Outlook
Thailand has always marked the great history of economy since 1960s. The growth rate is quite high, about more than 7 percent annually. When the global crisis attacked, Thailand survived well with annual growth about 5 percent. The nation has extraordinary history in the world.
The sudden change happen because of climate crisis. Thailand experienced the drought which affects its agriculture sector. The economy fell down and the growth was only about 2-4 percent annually. It happened for two years, in 2018 and 2019. Later, they depended on other sectors.
The slow progress also happened during pandemic which happened since 2020. Thailand has slow recovery compared to the neighbor countries due to vaccination regulation. The late distribution and low dosage the nation gets didn’t help much. As the result, unemployment rate was increasing.
Bangkok Consumer Spending
Non-Thai thinks that everything sold in Bangkok or Thailand is very cheap. When the tourist come to this country, they will spend much and it encourages its economic growth. Locals and foreigners shop for branded retailers especially those which have been supported by technology.
The booming of retail industry started in Bangkok, which is their capital and also social hub. With its good role as capital, Bangkok brings Thailand as the stable country in the world. In the region of SEA, the GDP is more than USS$ 500 billion. It’s supported by the change of consumer spending.
Thailand has entered their digital era especially in retail and e-commerce. Customer chooses digital technology which is offered by Fintech because of nice offering. Those Fintechs are corporating with many e-commerce and many kinds of retailers to support the customer experience.
This pattern is impressive. At the same time, retail stores are still selling well to the locals and tourists. However, Thailand records that the 14 percent of GDP in 2018 was from e-commerce. While the sales from the retail grew about 4 percent in the same year.
During and Post Pandemic
COVID-19 plays the role in the downfall of economic in Thailand. Market research in Bangkok is needed once the strategy to awaken the economy is starting. This issue was caused by slow progress of vaccination. Immigrants and skilled laborers chose to leave the country for safety reason.
During the volatile time that happened in Thailand, the government lent the balance for the household. It encourages the receiver to spend more in the market. They also move for unexpected plans such as tax relief and soft loans for companies in Thailand.
The government is also responsive by regulating new policies. They expand export market during the pandemic to lead recovery faster. Though it isn’t as massive as pre-pandemic, this plan goes smoothly and the economy continues to grow.
Thailand market has extraordinary dynamic. To understand Bangkok consumer spending, further research is needed. Besides the pattern, Bangkok consumer spending has characteristics and social understanding which become factors for a market to thrive.