Connect with us

Economics

More than half of Thailand’s household debt is good debt says Finance Ministry

The COVID-19 situation caused the economy to contract in 2020, raising the level of household debt against gross domestic product (GDP) to 86.6 percent in the third quarter of last year.

Published

on

logomain

BANGKOK (NNT) – Although Thailand’s household debt has increased due to the COVID-19 crisis, household debt in many countries has also risen.

More than half of typical household debt is good debt, including home loans and business loans. The government and the Bank of Thailand (BOT) have continually taken measures to help debtors repay their creditors.

Adviser to the Fiscal Policy Office (FPO), Wuttipong Jittungsakul, said today the COVID-19 situation caused the economy to contract in 2020, raising the level of household debt against the gross domestic product (GDP) to 86.6 per cent in the third quarter of last year.

The figure was calculated using the country’s GDP growth rate in 2020, a negative 6.1 percent.

Other countries, such as Australia, Norway, Sweden, the Netherlands, Canada, South Korea and Malaysia, have also experienced similar circumstances. Their household debt to GDP ratio increased by between 87.5 percent and 128.1 percent.

More than half of Thailand’s household debt is good debt, as people acquired loans to improve their quality of life. Thirty-four per cent was in home loans, 30 per cent was for personal consumption, 18 per cent was in business loans and 13 per cent was in car and motorcycle loans.

Since the COVID-19 crisis, the government and the central bank have rolled out debt relief measures, such as extending repayment periods, suspending debt repayments, reducing interest rates, implementing debt restructuring and waiving interest payments. As a result, most debtors are able to repay their loans as usual, while the number of people asking for assistance has decreased. Once the economic situation improves, household debt is expected to decrease.

Information and Source
Reporter : Praphorn Praphornkul
Rewriter : Tarin Angskul
National News Bureau & Public Relations :
http://thainews.prd.go.th

Source link

Economics

Asia’s slow rate of vaccination is a thorn in the region’s economic recovery

Southeast Asia has been hit badly. Daily infections for Indonesia, Thailand, Vietnam are at their worst, on a seven-day moving average. The Philippines and Malaysia are not far off their daily infection peaks reached in the second quarter of 2021.

Published

on

Last week was tough for the Asia-Pacific region. Many countries responded to stubbornly elevated daily infections by extending or tightening social distancing measures.

(more…)
Continue Reading

Economics

World Bank lowers Thai GDP growth outlook to 2.2%

In the Thailand Economic Monitor released today, the World Bank adjusted its outlook on Thailand’s economic growth this year to just 2.2% from its previous forecast of 3.4%.

Published

on

BANGKOK, July 15, 2021 – Thailand’s economy continues to take a heavy toll due to the COVID-19 pandemic and is projected to expand modestly at 2.2 percent in 2021, revised down from the 3.4 percent growth projected in March, according to the World Bank’s latest Thailand Economic Monitor “The Road to Recovery” published today.

(more…)
Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 14,165 other subscribers

Wise

Recent