The year 2026 is forecasted to observe a surge in market circulation during the Lunar New Year holiday in Thailand, with an estimated value of THB54.2 billion (US$1.75 billion). This anticipated figure would be the highest in six years, indicating an increase of 5% year on year.
According to a consumer spending survey conducted by the Centre for Economic and Business Forecasting at the University of the Thai Chamber of Commerce (UTCC), 25% of the respondents anticipate a more animated celebration this year, while others expect festivities similar to the previous year. Interestingly, 43% of the respondents have plans to pay tribute to Chinese gods and offer items of sacrifice to their ancestors.
Among the participants, a third mentioned plans to increase their spending during the festival, mainly attributing this to escalated prices. However, 35% of the respondents anticipate the prices of products to remain unchanged.
Approximately 70% of the respondents believe that the prices of sacrificial offerings, such as meat and fruits, would be higher than last year. A prudent approach was noticed among one-third of the respondents who intended to buy only necessary items, whereas one-fifth planned to reduce their spending compared to the previous year.
A noteworthy portion of the respondents, over 90%, expressed intentions to travel domestically. This indicates that a rise in local travel is expected during the Lunar New Year holiday.
Thanavath Phonvichai, President of the UTCC, stated that a large number of consumers are optimistic about an economic recovery after the election. This optimism stems from consumers being able to foresee who will spearhead the government’s economic team.
Interestingly, it was found that more than half of the respondents view the current economy as worse or significantly worse than during the same period of the previous year. They anticipate economic recovery to start in the third or fourth quarter of this year.
The respondents suggested that the new government should concentrate on enhancing infrastructure, fostering new industries for economic growth, fortifying the grassroots economy, upgrading regional infrastructure to boost tourism, attracting foreign investment, and supporting exporters. These suggestions mirror the concerns of the Thai people towards economic conditions and the necessity for a clear long-term strategy for sustainable economic growth.
The incoming government is expected to take office by May, with significant stimulus schemes projected to be initiated by the third quarter. Phonvichai urged the government to promptly eliminate corruption and crackdown on scams, as these issues significantly affect confidence in the tourism sector.
What is the estimated value of market circulation during the 2026 Lunar New Year holiday in Thailand?
An estimated value of market circulation during the Lunar New Year holiday in Thailand in 2026 is THB54.2 billion (US$1.75 billion).
What is the general outlook of the Thai people towards the economy?
More than half of the respondents view the current economy as worse or significantly worse than during the same period of the previous year. They anticipate economic recovery to start in the third or fourth quarter of this year.
What are the key suggestions provided by respondents for the new government?
Respondents suggested that the new government should focus on improving infrastructure, developing new industries for economic growth, fortifying the grassroots economy, upgrading regional infrastructure to support tourism, attracting foreign investment, and supporting exporters.
