Household debt in the first quarter this year soared to 16 trillion baht, accounting for 90.6% of GDP, attributed to increases in debt as well as the redefinition of national household debt, says Sakkapop Panyanukul, the Bank of Thailand's senior director of the economic and policy department.
Following the redefinition, household debt for the period rose to 16 trillion baht, accounting for 90.6% of the country's GDP, compared with 68.9% in the fourth quarter last year.
The central bank's new household debt definition covers student loans, loans to agricultural cooperatives, housing loans and microfinance, offered by both existing banks and non-banks, said Mr Sakkapop.
The bank reported the economy remained on a recovery path in May, driven mainly by the tourism sector and increased private consumption and investment.
Public spending also expanded based on higher current expenditure from the compensation of public servants, as well as higher capital expenditure from disbursement for transport and irrigation projects.
The value of merchandise exports excluding gold increased in line with manufacturing production as demand rose from trading partners.
The value of merchandise imports decreased from the previous month, attributed to lower imports of raw materials and intermediate goods as well as consumer goods.
The number of foreign tourist arrivals, after seasonal adjustment, continued to improve, said the central bank.
On the economic stability front, headline inflation declined, mostly because of lower energy prices following a dip in electricity and domestic retail oil prices, as well as a high base effect the previous year, he said.
Core inflation also decreased slightly, attributed to a high base effect for seasoning and condiment prices.
The labour market recovered in line with economic conditions, said the bank.
The current account registered a deficit from the services, income and transfers balance, while the trade surplus was small.
As for the exchange rate, the baht against the US dollar was stable on average from the previous month.
