Whether governments, companies or individuals, debt fuels the global economy. And Thai families are no different.
On average, Thai households owe THB160,000, which is about six months of their income, according to figures released yesterday by Thailand’s National Statistical Office.
Based on a mid-year survey of 26,000 households across the country, half of participants are indebted with an average amount of THB159,492 per household. As expected, most debt is caused by essentials such as housing, food, tuition and agriculture/business investment.
Although it’s not surprising that capital-dwellers earn more than those in other provinces, the survey found residents of the Bangkok Metropolitan region earn almost twice as much. Bangkok households bring in on average THB44,000 per month and spend 75 percent of their salary, while the nationwide average is THB25,000 each month. Families in the northeast save a little less – 20 percent – but that’s still on par with the global average of household savings.
Overall the ratio of debt-to-salary, meaning how much money people keep each month, has gotten worse, but that’s consistent with the global trend, according to data from the Organisation for Economic Co-operation and Development. In Thailand, officials assign most of the blame to the 2011 flood crisis, which cost many families their homes.
Kobsak Phutrakoon, the vice president of Bangkok Bank says the current political situation could harm this year’s GDP and potentially put next year’s figures at risk, Prachachart reported.
Photo: Bizmogy
