BANGKOK, 12 May 2015, Credit card spending dropped considerably during the first quarter of this year, says the Bank of Thailand (BOT).
According to the BOT, credit card spending during the first quarter of this year was reported at 398.89 billion baht, decreasing by 45.33 billion baht,or 10 percent, from the 444.2 billion baht reported in the last quarter of 2014. The bank attributed the fall to the nation’s ailing economy and rising debts, which lead to consumers being more careful about their spending and refraining from spending on unnecessary items.
The BOT reported that Q1’s local credit card spending was 326.36 billion baht, a 12.18 percent decrease from the previous quarter; spending abroad also dropped 6.44 percent.
In addition, card holders took out 47.46 billion baht in cash advance during the first quarter of this year, an increase of 1.75 billion baht or 3.83 percent, from the amount they did in the last quarter of 2014.
Despite the drop in credit card spending, the number of new credit cards issued by both commercial banks and non-bank institutes rose to 20.56 million, an increase of 253,991 from the previous quarter, said the BOT.