Thai public debt to GDP ratio at 55.59% as of July

[snoop1130]

FILE PHOTO: Thai finance minister Arkhom Termpittayapaisith speaks during an interview with Reuters in Bangkok, Thailand January 21, 2021. REUTERS/Chalinee Thirasupa

 

BANGKOK (Reuters) - Thailand's ratio of public debt to gross domestic product (GDP) stood at 55.59% as of July, up from 55.20% in the previous month, the finance ministry said in a statement on Wednesday.

 

That compares with the current debt ceiling of 60% of GDP, which can be raised if needed, as the country deals with its worst COVID-19 outbreak, according to Finance minister Arkhom Termpittayapaisith.

 

-- © Copyright Reuters 2021-09-01

 

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[ThailandRyan]

Pure ugliness.  Yet the prices on hoods and inflation are just starting to ramp upwards, alo g with the Thai Baht strengthening.  Truly Amazing and not good for the people.

[nkg]

44 minutes ago, snoop1130 said:

Thailand's ratio of public debt to gross domestic product (GDP) stood at 55.59% as of July, up from 55.20% in the previous month,

 

It sounds like a lot, but most wealthy countries have higher levels of debt to GDP:

 

France 98.5%
United Kingdom 87.0%
United States 82.3%
Japan 223.8%
Germany 64.1%

 

https://en.wikipedia.org/wiki/List_of_countries_by_public_debt

 

[trainman34014]

I don't believe a word they say; the truth is as Alien here as we supposedly are !

[Almer]

Every Thai i know is up to there eye balls in it.

[Sydebolle]

Finance minister Arkhom Termpittayapaisith is proud to announce a rise from 55.2% to 55.6% but has not reached the first level of 60% just yet. 

If needed, that can be lifted and, as Thailand is the mother of everything meanwhile, I could foresee Thailand going for 500% or more debt to GDP ratio. 

Keep up the good work, boys, and no not worry how all this will be paid back and by who - certainly not by people like Arkhom and the rest of this gifted government working endlessly hard in the sole interest of country and people! 

[Cake Monster]

I understood that after the last borrowing tranche about 3 Months ago, that the borrowing to GDP then stood at 59+ %, and that an act of Parliament was required to up the 60 % limit in order to allow for more borrowing.

Maybe I misunderstood something back then.

[Isaan sailor]

Here in Isaan, personal debt runs akin to personal pride.  Gotta have the latest pickup truck, smart phone big house, clothes, etc.  No wonder the ladies love foreigners.  And foreigners enjoy younger wives in return.

[Mr Meeseeks]

17 hours ago, nkg said:

 

It sounds like a lot, but most wealthy countries have higher levels of debt to GDP:

 

France 98.5%
United Kingdom 87.0%
United States 82.3%
Japan 223.8%
Germany 64.1%

 

https://en.wikipedia.org/wiki/List_of_countries_by_public_debt

 

Thai figures do not include loan sharks etc. however. If they did, it is likely they would be on par with or exceed those levels. 

[itsari]

60 percent or 100 percent is not the main issue . The main concern is there is much debt not being paid for .

[superal]

20 hours ago, ThailandRyan said:

Pure ugliness.  Yet the prices on hoods and inflation are just starting to ramp upwards, alo g with the Thai Baht strengthening.  Truly Amazing and not good for the people.

That's the bit that baffles me .

[nkg]

18 hours ago, superal said:

That's the bit that baffles me .

 

The Thai baht isn't really "strengthening". The pound has gone from 37 baht in August 2019 to (very briefly) 46 baht earlier this month. Now it is 44.93.

 

Currencies go up and down within short periods of time, hence the jagged graphs.

 

IMO the pound will be 48-49 this time next year, but there will be lots of ups and downs before then.

 

[nkg]

21 hours ago, Mr Meeseeks said:

Thai figures do not include loan sharks etc. however. If they did, it is likely they would be on par with or exceed those levels. 

 

"Public debt" is how we used to describe the "national debt" - how much the government owes.

 

It has nothing to do with "household debt", which is the category under which loan sharks would fall. Thai household debt is 89.3% of GDP, compared to UK household debt of 96.6% of GDP.

Edited September 3, 2021 by nkg

[superal]

5 hours ago, nkg said:

 

"Public debt" is how we used to describe the "national debt" - how much the government owes.

 

It has nothing to do with "household debt", which is the category under which loan sharks would fall. Thai household debt is 89.3% of GDP, compared to UK household debt of 96.6% of GDP.

Do you really think that the Thai figure of household debt is accurate ? Gathering the data in the UK is doable but in Thailand where the majority of the population do not pay taxes on earnings , have next to no government connections and are off the radar , seems hard to believe . Maybe for those who are contactable , yes . 

[nkg]

5 hours ago, superal said:

Do you really think that the Thai figure of household debt is accurate ? Gathering the data in the UK is doable but in Thailand where the majority of the population do not pay taxes on earnings , have next to no government connections and are off the radar , seems hard to believe . Maybe for those who are contactable , yes . 

 

Off the top of my head, something like 85% of UK household debt relates to mortgages on properties. I'd classify this as "good" debt - if I own a house worth £500,000 with an outstanding mortgage of £100,000, in theory I'm adding £100,000 to the UK's "household debt" figures. In practice, I can sell my house and have £400,000 in the bank and no debt.

 

Thai household debt has a far lower property component, something like 30% or 40%. The remaining debt is car purchases, business loans, unsecured debt etc.

 

So the profile of Thai household debt is far worse than UK debt. Obviously Thais do get involved with loan sharks etc, which wouldn't show up on the national figures if done on an "unofficial" basis.

Edited September 3, 2021 by nkg

[zzaa09]

On 9/1/2021 at 4:04 AM, ThailandRyan said:

Pure ugliness.  Yet the prices on hoods and inflation are just starting to ramp upwards, alo g with the Thai Baht strengthening.  Truly Amazing and not good for the people.

Appears to be the common practice the world over.