Jump to content
BANGKOK
snoop1130

Thai second-quarter household debt jumps to 83.8% of GDP as economy shrinks

Recommended Posts

Thai second-quarter household debt jumps to 83.8% of GDP as economy shrinks

 

2020-09-30T121349Z_1_LYNXMPEG8T1IT_RTROPTP_4_THAILAND-ECONOMY.JPG

FILE PHOTO: Cars pass a Skytrain (Bangkok Mass Transit System) construction site in Bangkok, Thailand May 13, 2018. REUTERS/Soe Zeya Tun

 

BANGKOK (Reuters) - Thailand's household debt level to gross domestic product (GDP) jumped to 83.8% in the second quarter, the highest since 2003, central bank data showed on Wednesday, as the pandemic hammered the economy.

 

Southeast Asia's second's largest economy suffered its biggest contraction in 22 years in the second quarter and may shrink a record 7.8% this year, the central bank predicts.

 

As of June, household debt increased to 13.59 trillion baht ($429.11 billion), from 13.50 trillion baht at end-March, equal to a revised 80.2% of GDP, already among Asia's highest.

 

The debt ratio was driven by an economic contraction, while the amount rose at a slower pace, Bank of Thailand director Don Nakornthab said in a statement.

 

The debt to GDP ratio may surge to 88-90% at the end of this year, according to Kasikornbank's research centre.

 

The BOT's household debt data is available from 2003.

 

reuters_logo.jpg

-- © Copyright Reuters 2020-09-30
 

Share this post


Link to post
Share on other sites

Household debt. Government debt.

........but the THB is holding up firmly.

  • Like 1
  • Haha 1

Share this post


Link to post
Share on other sites

Time for the Thai Reserve Bank to Rev up the Helocopter to save the economy.

  • Like 1

Share this post


Link to post
Share on other sites
12 hours ago, snoop1130 said:

BANGKOK (Reuters) - Thailand's household debt level to gross domestic product (GDP) jumped to 83.8% in the second quarter, the highest since 2003, central bank data showed on Wednesday, as the pandemic hammered the economy

Just waiting for all the lenders to start demanding pay-back.

 

  • Like 1

Share this post


Link to post
Share on other sites

" Southeast Asia's second's largest economy suffered its biggest contraction in 22 years in the second quarter and may shrink a record 7.8% this year, the central bank predicts. "

 

Thailand GDP dropping 7-8% in 2020 is not a horrible figure under the circumstances.  

Will wait to see the actual data months down the road.  

 

 

  • Like 2

Share this post


Link to post
Share on other sites
3 hours ago, soalbundy said:

Japan's household debt is around 63.8%. The UK's household debt to GDP is near 85%. Germany has around 94%, so Thailand is just average. How serious this all is depends on the countries ability to sustain/reduce it and whether most of it, like Japan, is internal.

The country is keeping 20% of GDP shut down indefinitely, that is how they plan to reduce it.

 

Though the "official" stated contribution of tourism to GDP is referred by some to be 20%, that is only the accounting number reported by legitimate business.  There is no doubt if all cash hand outs generated through tourism is accounted for it is much much greater.  I

Share this post


Link to post
Share on other sites

open the borders, let the tourists come

 

take the few deaths that go with it

 

better than zombie apocalypse

 

or people dying from hunger

 

or muggings/robberies increasing by desperate people

  • Like 1

Share this post


Link to post
Share on other sites
13 minutes ago, DrTuner said:

There are a few differences though. In the west a lot of debt is backed by property. In Thailand it's cars, phones, other rapidly depreciating assets.

Dream on... Americans don't buy property with the credit cards stuffed in their mail... 

 

People buying things they don't need with money they don't have are to be found everywhere in this (unfortunately) globalized world... 

  • Haha 1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...