Thailand’s national economic planning agency on Tuesday told the media that the COVID-19 crisis has had a massive impact on household debt which may soar beyond 80 percent of gross domestic product (GDP).
Thai household debt stood at 79.8 percent of GDP in the first quarter of this year, it said in a June report issued by the National Economic and Social Development Council (NESDC).
“The pandemic resulted in businesses shutting down in addition to the drought already having hit households hard, leading to increased borrowing of money as incomes declined,” said NESDC secretary-general Thosaporn Sirisumphand.
Thosaporn also said that the economic impact will be severe in the second quarter, as many businesses have laid off workers or cut their employees’ salaries.
The official also said consumer loans expanded 7.5 percent in the fourth quarter of last year.
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Li Zhong is a tech journalist who covers the latest developments in artificial intelligence, robotics, and biotechnology. Li is passionate about exploring the ethical and social implications of emerging technologies.