Thailand’s household debt soars as auto loans and cooperative debts spike

[Mike Lister]

On 9/1/2023 at 1:22 PM, DrukenMallardy said:

Oddly enough Thailand isn't that bad I guess in the grand scheme of things, but I'm not sure if it's a good thing or bad if that number is high based on the below table.  My intial thought would be a lower % would be better, but some wealthy countries seem to have high %

 

Banks in wealthy countries, ones where the GDP per capita is high, allow consumers to borrow more because there is a higher likelihood the debt will be repaid. Consumers in those countries have higher incomes  and are more likely to service their debt than consumers in poorer economies whee incomes are much lower.

[Gknrd]

Debt saps savings and retirement.  It is a plague on modern society IMO. 

 

[spidermike007]

Alot of Thailand's current economic woes are largely self inflicted. The reckless Prayuth administration engaged in multiple, highly selective economic shutdowns, that favored their cronies, and punished the masses. They also kept the nation closed off for far too long, and decimated tourism. Then they partially re-opened, with draconian restrictions. So, if you want to put the blame in the place it belongs, blame Prayuth and Prawit. They are the architects of the downfall of Thailand, the increased suicides, homelessness, crime, unemployment, and unhappiness of the people. 

 

Call it the Prayuth Decimation.

 

I remember what the Bank of Thailand Governor Sethaput Suthiwartnarueput described as a fragile and uneven economic recovery with the country trying desperately to move beyond the disaster inflicted on the economy in 2020.

Talk about an understatement. How and why was this disaster inflicted upon the economy? I would go one step further, and include the Prayuth decimation as one of the causes of the economic stagnation we are seeing now. This was not entirely circumstantial, and the revisionist history is already beginning, it would appear. So many things could have been done, to ensure a softer landing, when covid was not a factor anymore. The highly selective economic shutdowns which favored cronies, at the expense of the average Thai were punitive and extremely damaging, resulting in higher suicides, homelessness, crushed lives, countless lost businesses, and a further spread of the disease. 

The destruction of the tourism industry (which some might argue was a purification campaign in disguise, meant to get rid of nightlife and the sex industry) went on far longer that it should have, leading to far fewer tourists returning here, as the nation has largely been forgotten. The restriction were way too much, for far too long.

I know taking responsibility for one's actions is not exactly a strong suit here. But, Prayuth, Phiphat, Prawit, and Anutin are directly responsibility for much of the economic woes we are seeing now, and should be held responsible, and called out on this. The numbers do not even begin to reflect the amount of damage done to the cash economy, which is never counted in unemployment numbers, lost GDP, lost businesses, etc. Covid was one small factor. Irresponsible actions, an extraordinary lack of leadership, choosing a vaccine with the lowest efficacy available, refusing help from the international community with the vaccines, until it was too late, and showing extreme cowardice by keeping the door to tourism closed for far too long, and then opening with draconian restrictions, were huge mistakes, and someone needs to be held responsible.

 

You want to know how bad the economy really is?

1. Take a look at the number of huge billboards around the country that are blank. That is a direct statement that companies are trying to save money. It is really blatant if you are anywhere near the airports, where the real monster billboards are. 

2. Ask any real estate agent how condo sales are going right now.

3. Ask any car dealer how many cars they sold last month.