Consumer confidence rises, businesses remain wary

11 Sept 07:31 Key points summarised by AI

Thai consumer confidence improved for the first time in four months, reaching 50.7 in June, fueled by declining global oil prices and the government's 'Thai Chuay Thai Plus' stimulus scheme.
Despite consumer optimism, business confidence continued its four-month decline to 41.4, as entrepreneurs report the stimulus has not significantly boosted sales or offset skyrocketing operating costs, especially for SMEs.
The economic recovery is characterized by K-shaped growth, benefiting only sectors like AI and electronic goods, while failing to trickle down to SMEs and maintaining a persistently low employment rate.
Future economic growth, projected at 2-2.5%, hinges on sustained government stimulus, stable energy prices, and the de-escalation of Middle East conflicts, with a potential for 2% growth if conditions remain favorable.
While current US actions against Iran are not expected to push crude oil prices past $80/barrel, a prolonged conflict could escalate prices to $90-110/barrel, potentially limiting Thailand's growth to below 2%.

Government to start building Chainat-Pasak-Gulf water diversion canal next year

Today 14:58 Key points summarised by AI

Thailand's government will launch the "Chainat-Pasak-Gulf" water diversion canal project in fiscal year 2027, a seven-year mega-infrastructure initiative.
This permanent structural solution aims to mitigate recurrent central plains flooding by diverting water from the Chao Phraya River directly into the Gulf of Thailand, significantly reducing flow to major cities like Ayutthaya and Bangkok.
Prime Minister Anutin Charnvirakul justifies the long-term investment as a means to reduce future damages and fiscal burdens, contrasting it with the 40-50 billion baht spent annually on short-term flood relief.
Concurrently, the Prime Minister instructed officials to expand drainage capacity into the Tha Chin River and swiftly remove water hyacinths to improve immediate flood management.