Thai households are facing the highest level of debt in 16 years, according to a new survey by the University of the Thai Chamber of Commerce released on August 26. This situation is largely due to the prolonged Covid-19 pandemic and slow economic growth, the study determined. The survey, based on interviews with 1,350 respondents between Aug. 15 and 20, found that debt, mostly from asset purchases, averaged 501,711 baht ($13,857) per household this year, up 3.7 percent from 483,950 baht in 2020. The latest research…
Thai households are facing the highest level of debt in 16 years, according to a new survey by the University of the Thai Chamber of Commerce released on August 26.
The study determined that this was mainly due to the prolonged Covid-19 pandemic and slow economic growth.
The survey, based on interviews with 1,350 respondents between Aug. 15 and 20, found that debt, primarily from asset purchases, averaged 501,711 baht ($13,857) per household this year, an increase of 3.7 percent from 483,950 new research conducted in 2020 Thai Baht.
Almost 100% of respondents are heavily in debt
“About 99.6 percent of respondents were heavily indebted, mainly from personal loans and credit cards, as their incomes stagnated while spending increased due to the rising cost of living,” said the university’s president, Thanavath Phonvichai.
“People are borrowing for everyday expenses, buying durable goods like houses and vehicles, and doing business,” he said.
The study also found that each person had to repay debts of 12,801 baht per month, while 65.9% of respondents admitted that they had failed to pay their debts due to Covid-19 related circumstances, the economic crisis and inconsistencies in income and income. spend.
hope to improve
Overall, the latest data from the Bank of Thailand, the central bank, showed total household debt in the first quarter of this year stood at 14.6 trillion baht ($378.4 billion), or 89.2 percent of the country’s gross domestic product.
However, Phonvichai said that if export and tourism incomes improve, Thailand’s household debt could bottom out and taper off with the expected economic recovery.
