Thailand’s Finance Minister Sommai Phasi reported that a continuous slowdown in household debt is a positive sign suggesting that the Thai economy is on its way to recovery.
Government Spokesman Yongyut Mayalarp said the Minister had confirmed Thailand’s household debt growth had started to slow significantly since mid-2014. The current household debt growth was around 5 percent, compared with 18 percent in 2012.
The spokesman said the lower growth showed people were able to repay some of their debt, partly due to the government’s economic stimulus measures. The government’s recent assistance for indebted people has included the provision of nano finance as well as an easing of loan rules.
The government was confident that household debt would gradually decrease when the economy recovered, the spokesman added.
The Thai economy is expected to grow by 3.7 percent this year, significantly higher than last year’s growth of 0.7 percent.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
