news

china news service, bangkok, october 6 (li yingmin and feng haohang) the central bank of thailand (hereinafter referred to as the bank of thailand) announced on the 6th that thailand's household debt declined in the second quarter of this year and is expected to continue to decline in the third and fourth quarters.

over the years, due to excessive consumption, the problem of high household debt in thailand has become more prominent, affecting economic and social development.

the bank of thailand expects thailand's gross domestic product (gdp) to grow by 2.6% in 2024, reaching 18.15 trillion baht (approximately 3.94 trillion yuan). according to data from the bank of thailand, in the second quarter of 2024, thailand’s total household debt was 16.3 trillion baht (approximately 3.54 trillion yuan), accounting for 89.8% of gdp in 2024. this figure is down from 16.4 trillion baht in the first quarter (accounting for 90.8% of gdp in 2024).

jayawadee, assistant director of the bank of thailand's corporate relations department, said the decline in the ratio of household debt to gdp in the second quarter was attributed to gdp growth, but also benefited from the repayment of existing debt and a slowdown in new loan growth.

the growth rate of housing loans in thailand was smaller in the second quarter, with total outstanding loans increasing by only 0.57% month-on-month. according to statistics, of the total household debt of 16.3 trillion baht in the second quarter, loans from commercial banks accounted for 6.67 trillion baht, accounting for the largest proportion.

jayawadi said the slowdown in banking sector loan growth in the second quarter was affected by certain loan categories, particularly car hire purchase loans. uncertainty over price competition in the automotive industry has led to consumers delaying car purchases and has also slowed growth in car loan volumes.

the bank of thailand expects that thailand's gdp growth rate in the third and fourth quarters will be higher than that in the second quarter, residents' income will also increase, and bank loan growth will slow down, so household debt will continue to decline in the third and fourth quarters. (over)

(china news network)