Thai Retailers Association (TRA) has disclosed that the Retail Index for the first half of 2017 grew by only 2.81 per cent as retail sales in the second quarter faded, compared to first quarter growth of 3.02 per cent.
And they want the government to stoke the economy through new stimulus measures with clearly defined targets.
The core reason for the dip is the spending cycle, which typically peaks in the fourth quarter, and then carries over into the first quarter, said Jariya Chirathivat, president of the Thai Retailers Association (TRA).
Second and third-quarter spending is expected to gradually slow, before starting to recover in the fourth quarter. There have also been effects from weakening economic stimulus measures due to reduced government.
Jariya added that retail in the second half has seen clear growth in various product categories. That growth has been clustered at branches in Greater Bangkok and in major tourist cities in a few provinces, totalling only 30 per cent of all branches.
The remaining 70 percent of provincial branches showed only weak growth, bringing down the second quarter index and the overall second half down with it. The association says the drop reflects worsening buying power among provincial shoppers, because the economy has not only failed to recover, but continues to weaken. They are calling on the government to issue additional stimulus measures with more clearly defined targets.