Stable outlook for APAC sovereigns as growth rebounds and debt stabilizes

Economic growth rates in Asia-Pacific are broadly rebounding and debt burdens stabilizing, giving rise to a stable outlook for sovereign creditworthiness in 2022. Still, the pace of recovery differs vastly, and some economies will experience deep economic scarring, according to a new report by Moody’s Investors Service.

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.

Thailand’s Public debt to GDP ratio within framework says Finance Minister

Currently, Thailand’s ratio of public debt to gross domestic product (GDP) stands at 49.34 percent, which is below the Fiscal Sustainability Framework set at 60 percent.

Bank of Thailand extends debt repayment and interest reduction measures

As of September this year, the Debt Clinic project has helped some 8,300 card debtors. On average, each debtor has three cards, carrying a debt of about 240,000 baht each.

A Covid-19 debt shock in Asia?

The two largest Asian economies, China and Japan, have some of the highest levels of debt in the world, at the end of 2017 Japan’s total debt stood at 395 per cent of GDP and China’s at 254 per cent. But there are some significant differences in their debt composition.

Moody’s Sets APAC Sovereigns Outlook to Negative for 2020

19 of Moody’s 25 rated APAC sovereigns have stable outlooks, while four have negative outlooks and two have positive outlooks

Global Wave of Debt climbs to US$55 trillion, Largest, Fastest in 50 Years

According to World Bank study, the debt-to-GDP ratio of developing countries has climbed 54 percentage points to 168 percent since the debt buildup began in 2010.