MONDAY, April 15, 2024

Household debts in Thailand soar to 16 trillion baht, as NESDC urges new strategies

Household debts in Thailand soar to 16 trillion baht, as NESDC urges new strategies

Thailand’s household debt at the end of the second quarter of this year stood at 16.07 trillion baht, up 3.6% compared to the same period last year, the National Economic and Social Development Council (NESDC) said.

The NESDC announced on Monday that Thailand is struggling under a load of household debts, which account for 90.6% of the gross domestic product (GDP). This figure has remained unchanged from the first quarter of the year.

It said that during the course of the second quarter, debts for personal consumption and real estate grew substantially, adding that the number of borrowers has been rising too.

According to the NESDC, non-performing loans in Thailand have risen to 147 billion baht, up 2.68% compared to the previous quarter.

The agency also pointed to the inefficacy of the government’s debt moratorium for farmers, saying it failed to alleviate their burdens. Instead, it said, farmers are continuing to borrow, as their income does not cover their expenses.

Instead, NESDC said, the government should devise strategies to boost farmers’ incomes and use debt-restructuring remedies for debtors hit by the Covid-19 pandemic.

The government, meanwhile, has said it will announce measures to combat the scourge of informal loans on Tuesday.

Separately, NESDC said the number of jobs has risen, with as many as 40.1 million Thais now employed. This was mainly driven by the agricultural and tourism sectors.

Thailand currently only has 400,000 unemployed people, it said.