their concern on ability to manage liquidity and debt-servicing ability of households and businesses. Although the deterioration in credit quality affected profitability, Thai commercial banking system
as continued support from government measures. Meanwhile, the financial vulnerabilities of households and businesses remained the key obstacles to the economic recovery. In the first quarter of 2021
Limited Management Discussion and Analysis for the Second Quarter ended 30 June 2017 Page 4/22 improved consumer confidence and income of farm households. These drivers combined to support growth momentum
households. These drivers combined to support growth momentum and helped offset the still lingered at a low level of private investment and contracted in public spending. As the momentum from the above
household purchasing power remained weak. Despite improvements of both farm and nonfarm income, households’ purchasing power is compressed by the high debt burden and the waning confidence regarding
the year and from additional government measures to support low-income households, although these may gradually decrease. Private investment was also expected to slow down due partly to a decline in
export prices along with global crude oil prices. Meanwhile, tourism sector and private consumption continued to expand especially on account of spending by medium and high income households, although
forecasted to increase 9.6 percent annually. Additionally, as 60 percent of households are not connected to the national grid, relying on local solutions such as diesel generators and solar rooftop, the