Grassroots Economic Sentiment Index edges down in May

BANGKOK, 21 June 2016 (NNT) – The Government Savings Bank (GSB) has reported a decline in the Grassroots Economic Sentiment Index in May due to the drought crisis and the slump in agricultural prices.

GSB President Chatchai Payuhanaveechai stated that a survey was recently conducted by the bank’s Grassroots Economy Research Center on people who earn less than 15,000 baht a month for their views towards the economy in May. As a result, the survey placed the monthly Grassroots Economic Sentiment Index at 43.6, decreasing from 44.9 in April.

Mr Chatchai pointed out that the drop reflects grassroots citizens’ lack of confidence in the Thai economic condition, given the sluggish recovery, impacts from the drought and low prices of farm produce. Nonetheless, if the world economy starts to stabilize, it is believed the Thai grassroots economy will gradually rebound around the end of the second quarter or the beginning of the third quarter this year.

As for assistance for the low-income earners, the GSB President revealed that the bank is planning to tackle the problem of informal debt by offering customers a debt moratorium or a one-year soft loan. Those earning 15,000 baht or less will also be able to apply for a money card that comes with a maximum withdrawal limit of five times their salary.


-- NNT 2016-06-21

Grassroots declining, after a severe drought!

Made my day, but then again I am easily pleased.

Just about every Thai economic index is heading south. The downward trend started in 2105 when the new military government changed the incentive rules for foreign investment. Result - foreign investors ran for the hills. Local Thai smart money is also going to more secure countries where there is potential for greater profits because of higher worker productivity and other factors.

The Government is now trying desperately to halt the downward slide by holding innumerable forums, seminars, symposiums and conferences. Hubs are also being created on a regular basis for a variety of reasons. Talk rarely seems to equate to positive action.

In the meantime the PM is doing the global rounds trying to drum up business and enlist the help of other ASIAN countries. The results of those efforts remain to be seen.

Those earning 15,000 baht or less will also be able to apply for a money card that comes with a maximum withdrawal limit of five times their salary.

An opportunity to increase household debt by 5x. And this helps how?

Even if the Thai economy rebounds in the next quarter, this doesn't mean that salaries increase. In fact the government has resisted calls from the Labor sector to raise the minimum daily wage.