Songkran money circulation likely to drop, first time in 6 years

The University of Thai Chamber of Commerce (UTCC) on Wednesday forecast that money circulation during the Thai traditional New Year, Songkran, is likely to fall for the first time in six years thanks to the country’s ongoing political confusion.

If political tensions continue, but without violence, cash in circulation is expected to be less than Bt97 billion, down 1.49 per cent from the same period last year, according to Thanawat Polvichai, director the UTTC’s Business Forecasting Center.

Meanwhile, if the situation becomes chaotic, spending is projected to drop by Bt4 billio to some Bt93 billion will be spent during the holiday, a sharp drop of 4.67 per cent.

According to the survey of 1,213 respondents conducted between March 31 and April 4, the slump of cash flow will be at a record low for the first time since 2005.

Mr Thanawat, however, added that if the situation eases before Songkran, about Bt100 billion is expected to be in circulation, increasing 1.89 per cent from last year.

During the traditional Songkran festival starting on April 13, the economy usually grows by 4-5 per cent.

The Business Forecasting Center estimated the country may lose some Bt7-8 billion during this year’s holiday.

Nearly six in 10 respondents -- 58.4 per cent of those polled -- said they would not travel anywhere, while those with travel plans, 89.6 per cent plan to celebrate the traditional new year festival within Thailand, according to the UTCC survey.
 By: mcot.net