Do Thais really save 30% of their income?

[Hal65]

According to the World Bank this is how much they save: http://data.worldbank.org/indicator/NY.GNS.ICTR.ZS

Although poorer than countries like Japan and the US, they save significantly more according to this data.

Do you find this to be true? Personally I have a hard time believing it based on the stereotypes. But perhaps the stereotypes are exactly that.

[uptheos]

Looking at the rubbish my daughter in the UK buys at every opportunity, I could understand them saving more of their take home pay than her! (pro rated of course)

[JakeSully]

They do save but not beyond their next Honda Click, Nose Job or Boob Job. It's a vanity culture.. gotta have this and if they can't buy it at once, they get it on loan.

[uptheos]

They do save but not beyond their next Honda Click, Nose Job or Boob Job. It's a vanity culture.. gotta have this and if they can't buy it at once, they get it on loan.

Learned it from us.

[balo]

No comment

[Ghostnigel]

I agree with balo....

[nidieunimaitre]

Something strange in the title that the world bank put on top of the table.

There is a difference between NATIONAL income (which equals national product) and DOMESTIC income (which equals domestic product)..

DOMESTIC means within the borders, NATIONAL means DOMESTIC + or - transfers from abroad.

COPIED QUOTE:

Gross savings (% of GDP)

Gross savings are calculated as gross national income less total consumption, plus net transfers.

UNQUOTE

In my opinion that last sentence should be:" Gross savings are calculated as gross domestic income less total consumption, plus net transfers"

That way the title would make sense too: "Gross savings (% of GDP)

In that case, the answer to the OP's question could be (?) in the received net transfers.

[nidieunimaitre]

.... and I should have added that the received transfers from abroad could be money that was used for investment.

That money is spent, but it is not consumption.

So if <<<savings = income - consumption + net transfers>>>, then the savings will statistically be high (if there are high money transfers coming in from abroad)

PS. As a rule of thumb, in western countries the transfers are about 0 ( outgoing and incoming transfers normally compensate one another), and consumption is about 80% of income, leaving about 20% for saving.

[nidieunimaitre]

Long story short (and simple):

When macro economists use the word "savings" they mean something completely different from "savings" in normal English language.

[Brit_Doggie]

Save face is all I know of and 2 or more farang sponsors.

Edited August 3, 2015 by Brit_Doggie

[worgeordie]

Must be true thats why the majority of Thais are up to

their necks in debit,its a must have society,must have now.

regards Worgeordie

[al007]

I believe house hold debt in Thailand is very large, so unlikely they save 30%, in fact seems spend and max loans more probable

[Orac]

With the income disparity here that 30% average could reflect large amounts of wealth held by a very small part of the population.

[Hal65]

Must be true thats why the majority of Thais are up to

their necks in debit,its a must have society,must have now.

regards Worgeordie

At the risk of sidetracking my own thread I thought the debt remark was an interesting observation. Looking it up, here's what I found:

https://www.bot.or.th/Thai/MonetaryPolicy/ArticleAndResearch/SymposiumDocument/Presentation4_2557.pdf

[Krataiboy]

According to the World Bank report, "gross savings are calculated as gross national income less total consumption, plus net transfers".

Most of the gross savings, in the case of Thailand, are accounted for by the ill-gotten gains of the the grossly wealthy elite. Over 80 per cent of the prols are "heavily" in debt, according to a recent report in the Bangkok Post.

Just goes to prove you can "prove" anything with statistics.

[NickJ]

Before all the buy on time deals. It was true.

[BoristheBlade]

Over the last 20 years or so, Thai's and most of the worlds population have been spending at least 130% of their incomes, hence the global financial crisis

[misterphil]

Thais cant save a penny. And those that dont save, dont have to cause they are rich.

[bangon04]

I think they mean - 30 per cent of the national income is appropriated by the top 5 per cent of the people and hidden away in banks (n Switzerland) and real estate in the UK.

[peterb17]

You can only go from experience. I have found it difficult to persuade the BF to save- even if there is a goal in sight- new phone, holiday etc. Anything saved seems to disappear.

So have a new plan- a locked tip box- has a padlock. So money from salary snd tips from the hotel / restaurant where he works are now inaccessible - it's working .

[elgordo38]

Must be true thats why the majority of Thais are up to

their necks in debit,its a must have society,must have now.

regards Worgeordie

Its a world wide problem created by plentiful and cheap money. Governments want you to go into hock over your head its good for their business buddies. Banks are the really big winners

[Bulldozer Dawn]

Misleading because of median values. GDP divided by households.

1 percent of Thai population saves 90 percent of wealth.

The other 99 percent live day to day or on personal credit.

[fred Kubasa]

Being married to aThai for 11years and meeting many Thais I assure you that most, working class Thais

have little money -- usually just enough for a week without wages.

[Daniel Boon]

World Bank, a bastion of integrity (not)

[Robert24]

the data seems rather strange. In Timor Leste, some years they save more than 300% GDP and in Bangladesh about 40%. Looks like completely strange data. Probably safer to look up data from the BoT than the Worldbank for Thailand.

[Hayduke]

You can crunch numbers to produce almost any result you like. But how many people do most of us know anywhere who save 30% of their income?

[alanrchase]

Since I was fifteen I paid for myself. Old man lent me money, paid back,with interest. My son here is reasonably sensible. Rest of the "family" thinks I owe them a life. No one I know saves one Baht.

[akentryan]

50% for my live-in. Half gets wired to Mom's bank account to take care of the kid. The other half goes into a savings account and does not get tapped. Every Saturday 1,000 baht for pocket money for the coming week. Hard to tell what others do but I do think the number might be 3% as opposed to 30% amongst common folks. Although I do have a younger sister-in-law that I am temporarily helping out each month She saves exactly 30% of what I send her and lives on the remainder..

[mikiea]

I never think about opm* , NOT MY CONCERN , should not be yours either .

* other peoples money

[mikiea]

You can crunch numbers to produce almost any result you like. But how many people do most of us know anywhere who save 30% of their income?

30% is a bogus flim flam number some twit pulled outta his keester .