Once touted as the engine of Asia's rapid growth, Asia's middle class is now facing growing pains. In Thailand, household debt is squeezing the middle class. The household-debt-to-GDP ratio peaked above 95% in 2021. It currently hovers around 90%, still among Asia's highest.
About 7 in 10 borrowers have limited ability to service their loans, as delinquency rates remain high. With Thailand's GDP growth already lagging its Southeast Asian counterparts, the central bank worries that the debt crisis will continue to drag on the economy. How did middle class Thais become so indebted? And will the recent government measures to ease the debt burden prove effective?
00:00 Thailand's changing middle class
00:58 Gen Z busker struggles to pay school fees
03:02 What it means to be middle class in Thailand
04:28 Increasing Thai household debt
06:44 Where did the surge in household debt come from?
10:51 How much bad debt do Thais hold?
12:50 Gen Z busks to help with household bills
14:15 Many Gen Z workers spend more than they save
17:04 Gen Z, millennials are biggest group of debtors
21:27 Main sources of debt
23:12 Increasing number of credit card accounts
26:35 How debt hurts domestic tourism
30:58 Struggling middle class hurts the whole economy
33:39 A government promise to relieve debt
35:34 "You Fight, We Help" programme to cut household debt?
40:20 How can Thailand save its middle class?
43:06 The cost of not fixing increasing debt
=========
ABOUT THE SHOW: Insight investigates and analyses topical issues that impact Asia and the rest of the world.
==================
#CNAInsider #CNAInsight #Thailand #Thai #Bangkok #CostOfLiving #Squeeze #MiddleClass #Debt #GDP #Economy #Asia #Bank #Loan #CreditCard
For more, SUBSCRIBE to CNA INSIDER!
cna.asia/insideryoutubesub
Follow CNA INSIDER on:
Telegram: t.me/CNAInsiderSG
Instagram: www.instagram.com/cnainsider/
Facebook: www.facebook.com/cnainsider/
Website: cna.asia/cnainsider
CNA Insider