Thailand’s household debt for Q2 spikes at 16.07 trillion baht

[webfact]

 

Thailand’s household debt has increased by 3.6%, compared to the first quarter, to about 16.07 trillion baht in the second quarter of this year, representing 90.7% of GDP, according to the National Economic and Social Development Board.

 

The board said that credits of all kinds increased in the second quarter, mostly from real estate purchases and personal consumption.

 

Household debt poses a major challenge for all governments and, despite their efforts to address the problem, it tends to increase, resulting in about 370 billion baht in non-performing loans during the COVID-19 pandemic in the second quarter of this year, a 22% increase from the previous quarter and requiring debt refinancing.

 

Full story: Thai PBS 2023-12-04

 

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[nausea]

It's high, relatively speaking, but I wonder how much of that has to do with property mortgages; the UK has a similarly high level, but we're mortgage obsessed.

[Mike Lister]

1Q23 growth was 2.6%, 3Q23 growth was 1.3%, of course the debt ratio increased but not all of that increase was down to new loans.

[VinnieK]

Thais love affair with debt.

Must be the serf/slave mentality

I owe, therefore I am..

 

[Will B Good]

The crash is coming.

[hotchilli]

2 hours ago, webfact said:

The board said that credits of all kinds increased in the second quarter, mostly from real estate purchases and personal consumption

The problem is educating people about finances.

I want, I want, I want is all I hear now.

Instead of, what can I afford.

[StayinThailand2much]

3 hours ago, VinnieK said:

Thais love affair with debt.

Must be the serf/slave mentality

I owe, therefore I am..

 

True. And it has little to do with the pandemic. I wouldn't be surprised if even this official debt were to increase to almost 17 trillion baht till the end of next year.

 

Edited December 4, 2023 by StayinThailand2much

[StayinThailand2much]

3 hours ago, Will B Good said:

The crash is coming.

 

With households having so much debt, the question is not 'if', but 'when'. Sooner or later the banks will have to take ownership of a large number of properties and cars, or, alternatively, get into financial trouble themselves.

[Cake Monster]

4 hours ago, webfact said:

Thailand’s household debt has increased by 3.6%, compared to the first quarter, to about 16.07 trillion baht in the second quarter of this year, representing 90.7% of GDP, according to the National Economic and Social Development Board.

Household Debt has been quoted at 90.7 % of GDP for Months now

How is it possible to have a massive 3.6 % rise and still remain the same proportion of GDP

[Mike Lister]

14 minutes ago, Cake Monster said:

Household Debt has been quoted at 90.7 % of GDP for Months now

How is it possible to have a massive 3.6 % rise and still remain the same proportion of GDP

Because, as said, earlier, GDP has fallen from 2.6% in 1Q23, to 1.6% in 3Q23 whereas lending has increased.

[Jumbo1968]

Never seen so many large SUVs and high end motors round Pattaya, some one must be paying decent salaries.

[Gottfrid]

9 hours ago, Will B Good said:

The crash is coming.

You are soo right!

[still kicking]

3 hours ago, Jumbo1968 said:

Never seen so many large SUVs and high end motors round Pattaya, some one must be paying decent salaries.

I am a pensioner and live in the west my car is 27 years old, can't afford to buy a new car outright, the bank won't even give me a credit card. Spend all my money on 2 houses so I got to drive the old one till it packs up.

[StayinThailand2much]

7 hours ago, Jumbo1968 said:

Never seen so many large SUVs and high end motors round Pattaya, some one must be paying decent salaries.

 

In Bangkok, near where I live, there is an abandoned property, where bums live in tin shacks... They recently bought a few new motorbikes, and the other day an expensive new car was parked there right in front. - I'm not poor, but while there is no bank in Thailand that would even lend me 1 satang, on the other hand, such bums will probably be offered loans left and right. TiT!