Household debts rise as Thailand struggles to recover from pandemic
Thai household debt in the second quarter of this year has risen to 14.27 trillion baht or 89.3 per cent of the GDP, the National Economic and Social Development Council (NESDC) confirmed on Monday.
This increase has placed Thailand in 12th place among 70 countries globally and fifth in Asia.
Danucha Pichayanan, NESDC secretary-general, said Thailand’s household debt against the GDP had risen to 14.27 trillion baht from 14.14 trillion baht in the first quarter, which worked out to 90.6 per cent of the GDP.
He attributed this increase in household debts to more loans being taken for real-estate purchase, personal consumption and business operation.
“Household debt is likely to rise further as the economy has not fully recovered yet and the flood crisis is forcing families to take more loans to repair their homes and replace appliances. They also need money for consumption,” he said.
He added that the financial sector should pay special attention to three factors, namely non-performing loans, debt-relief measures and rising informal debt.
“According to a survey, informal debt in the first half of this year stood at 85 billion baht, up 1.5 times compared to 56 billion baht in 2019, showing that some households are facing a liquidity shortage,” he added.
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