Kata Rocks
THE PAVILIONS PHUKET BRITISH INTERNATIONAL SCHOOL, PHUKET Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


Household debt reaches 11-year high

Household debt reaches 11-year high

BANGKOK: Thai workers’ debt has surged to the highest in 11 years, driven by higher living costs and easier access to loans.

economics
By Bangkok Post

Tuesday 30 April 2019, 10:23AM


A man works at an expressway construction site.Household debt for labourers surged in the first quarter. Photo: Pattarapong Chatpattarasill / Bangkok Post

A man works at an expressway construction site.Household debt for labourers surged in the first quarter. Photo: Pattarapong Chatpattarasill / Bangkok Post

The latest survey by the University of the Thai Chamber of Commerce (UTCC) had 1,200 respondents whose income is B15,000 per month or less. It found 95% of them were in debt.

The survey estimated average debt per household at B158,855, the highest level in 11 years, up by almost 15% from 2018.

Some 86% of respondents have no savings, mostly because of higher debt resulting in increased expenses, rising product prices, and higher housing and car loans.

The majority said they have been quite cautious in their spending.

Thanavath Phonvichai, Vice-President for Research at the UTCC, said most workers are concerned about the domestic economic slowdown and their overall sentiment remained weak despite the general election.

“Some 80.3% of respondents have defaulted on their debt repayment in the previous 12 months because they spent more than they earned,” said Mr Thanavath. “They want the daily minimum wage to increase on par with rising costs for utilities, travel expenses and food prices.”

He attributed the uptick to the country’s economic slowdown.

“If the domestic economy remains weak, we expect workers will secure more unorganised loans,” said Mr Thanavath.

The survey found borrowing from loan sharks made up 41.8% of labourers’ household debt this year, up from 34.6% in 2018.

He urged the government was urged to help workers with costs of living via state subsidies and the low-priced Blue Flag programmes.

The UTCC forecast Thai economic growth in the first half to stay in the range of 3.2-3.3%, reaching 4% in the second half.

The full-year projection is 3.5-3.8% this year.

“Growth at the lower end of 3.5% is possible for the year if there is a delay in a new government forming,” said Mr Thanavath.

He proposed the government introduce a new stimulus package to build confidence in the second quarter, saying a slowdown will decrease the confidence of consumers, businesses and investors.

The government is being also urged to take care of the baht's strength and improve shipments by boosting border trade and exports.

“If it wants speedy results, the government should come up with short-term measures for tourism and property,” said Mr Thanavath.

 

Read original story here.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

Be the first to comment.

Have a news tip-off? Click here

 

Phuket community
Saving the elephant

Ouch... 'horse' should be 'horses','would' should be 'wouldn't',...(Read More)


Smith's Ashes run-spree sparks Bradman comparisons

Mr Winfield, I didn't accuse you of cheating, in sport, cheating in anything, is cheating, I do ...(Read More)


Jamie’s Phuket: A visit to Doi Thepnimit temple

It's built on the site of what was a popular camp-site (privately owned of course) and the track...(Read More)


Saving the elephant

R,that's a heartwarming story and i bet for some people it's the only companion....(Read More)


Thai airways reports loss of 122% in Q2

Reg.:Suggestion of having 2 types of air crafts only" A quick look at fleets of leading Asian,M...(Read More)


Phuket Property Guide: What makes a condo in Phuket?

You forgot to mention that unless a condo has a HOTEL LICENSE, its is illegal to rent for periods of...(Read More)


New Phoenix owner aims to restore wreck, return it to the sea

Argh - hating the recently added non edit function- please capitalize P in Phoenix....(Read More)


New Phoenix owner aims to restore wreck, return it to the sea

Florida resident here, with many hurricane experiences and that was a Category 1 which I was driving...(Read More)


Chinese tourist rescued from surf by Patong lifeguards

Mr ematt, it's very simple, they weren't in the water to rescue him, until after he got into...(Read More)


Smith's Ashes run-spree sparks Bradman comparisons

Mr Winfield, where did I say it was "acceptable," I simply stated we all make mistakes, yo...(Read More)