Thai household debt hits all-time high of 340K baht per house
Household debt in Thailand is at a record high. A survey carried out by the University of the Thai Chamber of Commerce shows that household debt has increased by 7.4% since this time last year and now sits at a record high of 340,000 baht.
The survey was carried out between November 11-23, canvassing 1,201 people around the country.
The Nation reports that over 88% of those surveyed confirmed they were in debt, with most saying it was due to having bought a house or car, or as a result of work-related credit card debt.
Over 59% said they were in formal debt and repaying 16,000 baht a month, with 40.8% saying they were paying back informal debt at a rate of around 5,200 baht a month.
The director of the school’s Centre for Economic and Business Forecasting, Thanawat Pholwichai, says the level of household debt is a cause for concern, citing the economic slowdown, higher prices on consumer goods, and global trade conflicts as the reasons behind it.
(‘Global conflicts’ is an easy blame for just about everything in Thailand now – Ed)
Thanawat says, although many Thai citizens would like to save more money and lower their cost of living, the ongoing rise in the cost of consumer goods makes it impossible. In order to keep the economy going, Thanawat believes the government will have to introduce further stimulus packages by the middle of the first quarter of 2020.
SOURCE: The Nation
PHOTO: Director of the school’s Centre for Economic and Business Forecasting, Thanawat Pholwichai
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