Household debts exert pressure on Thai economy

With a debt mountain of 12.17 trillion THB (372 billion USD), or 77.6 percent of the national GDP at the end of March, Thai households are among the biggest borrowers in Asia, and they find it difficult to keep up with payments.

Friday, August 31, 2018 14:53

Household debts exert pressure on Thai economy ảnh 1

Illustrative photo (Photo: moneycontrol.com)

Bangkok (VNA) – With a debt mountain of 12.17 trillion THB (372billion USD), or 77.6 percent of the national GDP at the end of March, Thaihouseholds are among the biggest borrowers in Asia, and they find it difficultto keep up with payments.

Household debts in the country are said to increase as the Thai central bankhas signalled it is likely to follow other central banks around the world to raiseinterest rates from near-record lows.

Private consumption is a critical element driving the Thai economy, accountingfor half of its 490 billion USD GDP.

Consumers continued to borrow at a robust pace in the second quarter, whenoverall consumer debt rose 8 percent from a year earlier, including a 12.4 jumpin car loans.

The National Economic and Social Development Board said that the economy sloweddown in the second quarter of the year. However, the board still kept its 2018growth forecast unchanged in a range between 4.2 percent and 4.7 percent.-VNA

VNA

#debt mountain of 12.17 trillion THB #Thai households #biggest borrowers in Asia #Thai central bank #Private consumption #Thai economy #Vietnam News Agency #Vietnamplus Thailand

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