BANGKOK, 10 May 2015 – Finance Minister Sommai Phasi has remarked 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 Minister of Finance Sommai Phasi had confirmed Thailand’s household debt growth had started to slow down significantly since mid 2014. The current household debt growth was around 5%, compared to 18% in 2012, and it was lower than some countries such as Malaysia.
The lower growth showed that people were able to repay some of their debt partly due to the government’s economic stimulus measures, said the spokesman.
The government’s recent assistance for indebted people includes permission to provide nano finance as well as easing of loan rules.
The government was confident that household debt would gradually decrease when the economy recovered, the spokesman added.
The Thai economy has been forecast to grow by 3.7% this year, significantly higher than last year’s growth of 0.7%.