According to data from the National Credit Bureau, both before and after the Bank of Thailand (BOT) revised the data, household debt in Thailand was 15.96 trillion baht at the end of June 2023, accounting for 90.6 percent of GDP, signaling economic concerns.
As of June 2023, the amount of non-performing loans (NPLs) had once more surpassed 1 trillion baht. This was still 950 billion baht, an increase of 7.7% from the first quarter. The likelihood of accumulating debt is raised by the persistent economic difficulties and the gradual cessation of governmental aid to the populace, which has resumed normal policies. NPLs are made up of a variety of segments, including approximately 200 billion baht in vehicle loans—an increase of 18% from the same time last year. 180 billion baht are owed on mortgages, 250 billion baht on personal loans, 560 billion baht on credit cards, and 720 billion baht are owed on agricultural loans.
Due mostly to car loans totaling 200 billion baht, the Special Mention Loan (SM), outstanding loans between one and three months, has reduced from 600 billion to 475 billion.
The Governor of the Bank of Thailand, Sethaput Suthiwartnarueput, stated that the trend of NPLs in the system is projected to increase, particularly in Special Mention (SM) loans, within the same time period. He did, however, view this as a typical occurrence and does not anticipate it to turn into a serious crisis that threatens economic stability. He added that there hasn’t been a significant rise in NPLs in the economy.
The governor went on to say that due to the possibility of lower figures in the second quarter of 2023, initial projections of Thailand’s gross domestic product (GDP) for 2023 may be revised downward. However, considering the hazy state of the global economy and its impact on exports, overall growth is still predicted to be about 3%. The earlier prediction was 3.6 percent.
Thailand’s economy is still improving despite sporadic swings. The general picture is consistent with the previous assessment, despite the fact that some periods’ results may be lower than anticipated. This year, private sector investment is anticipated to increase by more than 4%, and international travel, despite a slowdown from China, will still bring in over 29 million foreign visitors to boost the economy.
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SOURCE: http://khaosodenglish.com
