webfact Posted July 7, 2020 Share Posted July 7, 2020 Thai first quarter household debt at 80% of GDP, highest in four years FILE PHOTO: A view of Bangkok city amid the spread of the coronavirus disease (COVID-19) in Bangkok, Thailand, June 21, 2020. Picture taken June 21, 2020. REUTERS/Athit Perawongmetha/File Photo BANGKOK (Reuters) - Thailand's household debt level to gross domestic product (GDP) rose slightly to 80.1% in the first quarter, the highest level in four years, central bank data showed, with the trend set to continue as the coronavirus outbreak squeezes the economy. Southeast Asia's second's largest economy could shrink a record 8.1% this year, the central bank predicts. As of March, household debt stood at 13.479 trillion baht ($431.47 billion), little changed from the 13.483 trillion baht at the end of last year, equal to 79.9% of GDP. The debt to GDP ratio may jump to 88-90% at the end of this year, which would be the highest in the 18 years that the central bank has compiled records on household debt, according to Kasikornbank's research centre. A sharp economic contraction and banks' debt relief measures, including lower loan repayments and debt moratoria, are likely to keep household debt levels high, it said. Soft loans offered to households hit by the outbreak are also likely to push up debt levels, which are already among Asia's highest. (Reporting by Orathai Sriring; Editing by Martin Petty) -- © Copyright Reuters 2020-07-08 - Whatever you're going through, the Samaritans are here for you - Follow Thaivisa on LINE for breaking COVID-19 updates 2 Link to comment Share on other sites More sharing options...
Popular Post RichardColeman Posted July 7, 2020 Popular Post Share Posted July 7, 2020 (edited) 14 minutes ago, webfact said: Southeast Asia's second's largest economy could shrink a record 8.1% this year, the central bank predicts. End of the year with no tourists and dire high baht exports, I can safely predict that will be at least 10% out Edited July 7, 2020 by RichardColeman 7 Link to comment Share on other sites More sharing options...
tribalfusion001 Posted July 7, 2020 Share Posted July 7, 2020 Not looking too good. Link to comment Share on other sites More sharing options...
Justgrazing Posted July 7, 2020 Share Posted July 7, 2020 (edited) 51 minutes ago, webfact said: and banks' debt relief measures, Hand .? but then you wouldn't expect anything else off Bankers .. Edited July 7, 2020 by Justgrazing Sp 2 Link to comment Share on other sites More sharing options...
Popular Post smedly Posted July 7, 2020 Popular Post Share Posted July 7, 2020 1 hour ago, webfact said: Thai first quarter household debt at 80% of GDP excluding illegal loans from loan sharks - adding another 20% 7 1 Link to comment Share on other sites More sharing options...
Popular Post Creasy Posted July 7, 2020 Popular Post Share Posted July 7, 2020 The bringer of happiness to his people will come to the rescue. 4 Link to comment Share on other sites More sharing options...
Popular Post ukrules Posted July 7, 2020 Popular Post Share Posted July 7, 2020 It's coming........! 4 1 Link to comment Share on other sites More sharing options...
Trillian Posted July 8, 2020 Share Posted July 8, 2020 (edited) Of course it increased, GDP fell! If the level of GDP reduces, which it will, probably by around 10%, and if no new household debt is issued, the ratio of debt to GDP will increase.......duh! Edited July 8, 2020 by Trillian 1 Link to comment Share on other sites More sharing options...
DoctorG Posted July 8, 2020 Share Posted July 8, 2020 This will become the new normal in many places around the world. The longer the lockdowns the deeper the debt. 1 1 Link to comment Share on other sites More sharing options...
Trillian Posted July 8, 2020 Share Posted July 8, 2020 FWIW I expect commercial loans to increase but that's not household debt, I think household debt will remain flat or may even decline because banks are not going to make unsecured low asset value loans to consumers. But of course you have to measure the debt properly to see that and measuring it against a sinking GDP certainly is not the way! 1 Link to comment Share on other sites More sharing options...
JonnyF Posted July 8, 2020 Share Posted July 8, 2020 No big story here (yet!), the amount in real terms remained about the same. However, this is for the first quarter. We have to remember that January to March were relatively normal months (compared to April to June) as C19 was just gathering pace. The second quarter figures will be horrible. As will third quarter. 2 Link to comment Share on other sites More sharing options...
Isaan sailor Posted July 8, 2020 Share Posted July 8, 2020 I’ll wager 12% down by year end. Any takers? 1 Link to comment Share on other sites More sharing options...
Cake Monster Posted July 8, 2020 Share Posted July 8, 2020 Wow ! If Q1 debt to GDP ratio was 80.1%, then what is it likely to be in Q2 That is when the Covid outbreak really started to impact Thailand Any advance on 90% Link to comment Share on other sites More sharing options...
Moo 2 Posted July 8, 2020 Share Posted July 8, 2020 Thailand's household debt, the highest level in four years! I wonder why, it would not have anything to do with the Militaries kicking out the democratically elected Civilian Government, would it? or it's just a coincidence! "A bottle of wine contains more philosophy than all the books in the world" Louis Pasteur Link to comment Share on other sites More sharing options...
worgeordie Posted July 8, 2020 Share Posted July 8, 2020 (edited) I wonder if that includes the 1.1 Trillion Baht that teachers owe their fund. regards worgeordie Edited July 8, 2020 by worgeordie correction Link to comment Share on other sites More sharing options...
hotchilli Posted July 8, 2020 Share Posted July 8, 2020 1 hour ago, JonnyF said: No big story here (yet!), the amount in real terms remained about the same. However, this is for the first quarter. We have to remember that January to March were relatively normal months (compared to April to June) as C19 was just gathering pace. The second quarter figures will be horrible. As will third quarter. Yep first quarter had no real impact, wait for the remaining figures for 2nd 3rd and finally the 4th quarter. End of this year is going to be bad news all round. Link to comment Share on other sites More sharing options...
Venom Posted July 8, 2020 Share Posted July 8, 2020 The hub of debt trap. Link to comment Share on other sites More sharing options...
Skeptic7 Posted July 8, 2020 Share Posted July 8, 2020 10 hours ago, ukrules said: It's coming........! Oh how I do so hope you're right!!! Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now