Display mode (Doesn't show in master page preview)

6 Jul 2023

Econ Digest

Household debt in 1Q23 stood at 90.6% of GDP, but Thailand must accelerate the implementation of sustainable measures to reduce household debt

คะแนนเฉลี่ย

        The Bank of Thailand (BOT) has improved the coverage of its data on household borrowings or household debt by including new data from: 1) the Student Loan Fund; 2) National Housing Authority; 3) Pico Finance; and, 4) non-savings cooperatives, in order to get a clearer picture of household debt, particularly on borrowings for educational and occupational purposes. Those borrowing for occupational purposes tend to have low and/or irregular income, and their lenders are largely cooperatives. As of 1Q23, household debt outstanding based on the new dataset grew roughly by THB766 billion to THB15.96 trillion from the THB15.19 trillion that was based on the previous dataset, equivalent to 90.6% of GDP, which is lower than the 91.4% of GDP reported in 4Q22. It is expected that household debt outstanding will continue to decline after peaking at 95.5% of GDP in 1Q21.

        A new wave of household debt has shown signs of slowing down, particularly debt with relatively high credit limits, due probably to the increased financial vulnerability of households, rising lending rates, and specific factors related to home loans after the relaxation of the loan-to-value (LTV) ratio limit was lifted in late 2022.

        In 2023, KResearch expects that the household debt to GDP ratio will decline to a range of 88.5-91.0%, which remains unsustainable and requires monitoring. However, the progress and clearer direction of the BOT in addressing household debt issues is considered a positive starting point, and may help gradually ease pressure on household debt in Thailand. However, it must be noted that addressing household debt will continue to be challenging ahead due to the complexity of issues that are related to household income and behavior, plus Thailand’s demographic structure shows that the country is already an aged society, meaning that households may face greater limitations in paying off their debt.

Scan QR Code


QR Code

Annotation

This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow.

Econ Digest

หนี้ครัวเรือน