Household debt rose to an average of 559,408 baht this year

[snoop1130]

 

Household debt in Thailand has climbed to an average of 559,408 baht per household, an increase of 11% compared to last year, due to slow economic recovery, the COVID19 pandemic, political conflict and geopolitical issues.

 

The Bank of Thailand is implementing measures to tackle the debt problem, adding that there is an urgent need for financial education and plans to manage expenditure in the long term. Given that household debt accounts for 90% of Thailand’s GDP, the forecast for next year’s GDP indicates a positive economic outlook.

 

The setback in forming a government, however, has been identified as an obstacle to economic policy implementation, leading both domestic and foreign investors to postpone their investments until a clearer picture of Thailand’s politics emerges. The delay is also affecting the budget structure for fiscal 2024, hindering the government’s ability to stimulate the economy with the more than 700 billion baht budget in the first quarter of 2024.

 

Full Story: https://www.thaipbsworld.com/household-debt-rose-to-an-average-of-559408-baht-this-year/

 

-- © Copyright Thai PBS 2023-07-27

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

[sidjameson]

If I had any debt I wouldn't even buy a 25bht iced coffee on the street.

Many Thais remind me of the small kid in the playground whose been conned out of his lunch money.

Edited July 27, 2023 by sidjameson

[fdimike]

I would be willing to bet that most of those in debt are government employees who have big eyes and small wallets.  They borrow against their future government pensions, life insurance etc etc just to "show off" their supposed wealth.  This is not second hand information as most of my in laws are supposed "teachers" who are deeply in debt.  No common sense at all !

[RichardColeman]

My wife is the only Thai i have ever met that plans money and has done so all her life, paid off teacher student loans, bought land and farm, plans all our money for the the month in little pots, never spends more than we have come in. 

[hotchilli]

14 hours ago, snoop1130 said:

The Bank of Thailand is implementing measures to tackle the debt problem, adding that there is an urgent need for financial education and plans to manage expenditure in the long term

Or hand-out loans to those who cannot repay?

[BangkokReady]

14 hours ago, snoop1130 said:

an urgent need for financial education

Among many other subjects...

[Hatyaier]

Betting on the wrong chicken or bull. An honest mistake. 

Edited July 28, 2023 by Hatyaier

[connda]

14 hours ago, snoop1130 said:

Household debt in Thailand has climbed to an average of 559,408 baht per household, an increase of 11% compared to last year, due to slow economic recovery, the COVID19 pandemic, political conflict and geopolitical issues.

That's unsustainable.

[StayinThailand2much]

5 minutes ago, connda said:

That's unsustainable.

But probably will only get worse. If banks continue lending like this, then soon we will read that households are not 560,000 baht in debt, but 650,000.

[bradiston]

15 hours ago, snoop1130 said:

 

Household debt in Thailand has climbed to an average of 559,408 baht per household, an increase of 11% compared to last year, due to slow economic recovery, the COVID19 pandemic, political conflict and geopolitical issues.

 

The Bank of Thailand is implementing measures to tackle the debt problem, adding that there is an urgent need for financial education and plans to manage expenditure in the long term. Given that household debt accounts for 90% of Thailand’s GDP, the forecast for next year’s GDP indicates a positive economic outlook.

 

The setback in forming a government, however, has been identified as an obstacle to economic policy implementation, leading both domestic and foreign investors to postpone their investments until a clearer picture of Thailand’s politics emerges. The delay is also affecting the budget structure for fiscal 2024, hindering the government’s ability to stimulate the economy with the more than 700 billion baht budget in the first quarter of 2024.

 

Full Story: https://www.thaipbsworld.com/household-debt-rose-to-an-average-of-559408-baht-this-year/

 

-- © Copyright Thai PBS 2023-07-27

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

Blame the Senators for the political impasse. They're solely responsible.

Edited July 28, 2023 by bradiston

[Henryford]

Depends if that includes mortgage debt. If it does then it's not a big figure. One years average salary?

[fulhamster]

5 hours ago, Henryford said:

Depends if that includes mortgage debt. If it does then it's not a big figure. One years average salary?

Many Thais are earning less than 15K / month

 

Do the maths

[bradiston]

6 hours ago, Henryford said:

Depends if that includes mortgage debt. If it does then it's not a big figure. One years average salary?

How many Thais have a mortgage? (I have no idea). I know several who have borrowed from the bank and defaulted. They just pack their bags and move on.

Edited July 28, 2023 by bradiston

[trainman34014]

10 hours ago, fdimike said:

I would be willing to bet that most of those in debt are government employees who have big eyes and small wallets.  They borrow against their future government pensions, life insurance etc etc just to "show off" their supposed wealth.  This is not second hand information as most of my in laws are supposed "teachers" who are deeply in debt.  No common sense at all !

Yep; 'Teachers' in Wife's Family and circle of Friends all up to their eyes in debt.    In the Staff Room they are scorned if they don't have a 'suitable sized ' new Car every year or so and many knowing how useless the Thai State Education System send their own Kids to International Schools or Universities at huge cost....money which they borrow.

 

My Wife herself was a Midwife for 25 years, never borrowed a Baht but was, and is still in retirement, harrassed by the Banks to borrow huge amounts of money just because she was a Government Employee.   As usual it's the Government and the Banks (mainly owned by Government) who are at the root of the problem..... along with the dreaded 'Face' problem !!

Edited July 28, 2023 by trainman34014

[jacko45k]

16 hours ago, trainman34014 said:

As usual it's the Government and the Banks (mainly owned by Government) who are at the root of the problem..... along with the dreaded 'Face' problem !!

Does the Government guarantee the loans it's staff take on in any way?

[ozz1]

But they have a new big TV

new phone and new car they don't really plan for the future as long as they look like they have money it's a shame really

[lordgrinz]

On 7/28/2023 at 8:45 AM, StayinThailand2much said:

But probably will only get worse. If banks continue lending like this, then soon we will read that households are not 560,000 baht in debt, but 650,000.

They aren't even including the loan shark debt, or interfamily debt, Thai's love debt.

[Mr Meeseeks]

On 7/27/2023 at 5:39 PM, snoop1130 said:

there is an urgent need for financial education

No sh** Sherlock.