COVID-19 poisoning, a catalyst for Thai household debt Highest 18 years
Household debt received periodic notifications from the authorities. It is likely to become more pressing on people’s livelihoods. Recently on January 1, there is a report from the Bank of Thailand (BOT) publishing statistics of household borrowing for the third quarter of 2020. Household debt in circulation was 13,766,209 million baht, an increase from Q2 2020 at 182,091 million baht, accounting for the household debt to GDP at 86.6%, the highest in 18 years, an increase from the second quarter at 83.8%. And an increase when compared to the third quarter of 2019 at 78.9%
While Miss Thanyalak Watcharachai Surapon Deputy Managing Director of Kasikorn Research Center Co., Ltd. said that the household debt figure that in the future, household debt level will rise even further. As long as the COVID-19 epidemic has not disappeared.
Ms. Thanyalak said Reducing household debt means increasing income and reducing expenses. But now, increasing income is not a good time. As for the reduction of expenses, it is a matter of personal financial discipline, such as buying a refrigerator or a car, there should be some savings. Which the current values are not like that Now, COVID-19 has resumed its epidemic. The immediate problem must have measures to support the debtors who are continuously affected.
Ms. Thanyalak said Situation of the COVID-19 Outbreak Causing loss of income from employment termination or salary reduction But the debt still has the same. Making the household sector in a tight state Especially, households with income below 20,000 baht per month have more debt than savings. In a state of concern The more Thai society is in an aging society What is worrying is the lack of savings to be kept.
Ms Thanyalak said the current high unemployment rate was caused by a new epidemic of COVID-19 causing all sectors to be affected. Overall demand for labor has decreased Waiting for the spread of COVID-19 More relieved As for the assistance from the government, the matter of employment is just a support. This does not make the situation worse than this. Or the project to hire new graduates Compared to helping the unemployed in the United States as the Paycheck Protection Program (PPP), in principle is good. But many factors in Thailand are not very favorable. Because SME businesses in the United States have a large number of legal entities registered. Can be examined While SMEs in Thailand have 3 million entrepreneurs, around 400,000 are registered as juristic persons, so the Thai government can only do subsidized measures.
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