According to the report of Bank of Thailand, the outstanding debt of Thai households in 2021 increased by 3.9%. Against the backdrop of a slow-growing economy, the ratio of household debt to GDP rose to 90% in 2021 from 89.7% in 2020.
The basis of the debt is:
- Home purchase loan (34.5%).
- Business loan (18.1%).
- Car/motorcycle loan (12.4%).
Moreover, the number of unsecured loans is growing, for example, the use of a credit card or consumer loans. In 2021, this type of credit services took 8%, while last year it was 7%.
These data were obtained by National Statistical Office during Socio-Economic Survey of Households for 2021. The data indicate that the financial situation of citizens has become even more precarious under the impact of COVID-19.
Although in 2021 the average income of Thai households was 27,352 baht per month, which is more than the average income of 26,018 baht per month in 2019, but the average amount of expenses also increased to 21,616 baht per month from 20,742 baht per month in 2019. That is, everyday expenses make up 79% of monthly income, if there is a loan, people do not have the opportunity to save money.
Thailand's household debt ratio is expected to remain high in 2022 within the projected range of 86.5-88.5% of GDP. This is less than at the end of 2021, but still a fairly high figure.
The above statistics show that the purchasing power of Thai citizens will remain quite low. What will make developers apply special promotions, promos and bonuses to attract customers.