Thailand’s economy is forecast for clear recovery momentum in 2022 as domestic demand will remain weak in 2021, says CIMB Thai Bank (CIMBT).
“Thailand may only post a recovery next year in the export sector because domestic demand remains weak and has sluggish prospects, especially for small businesses that face tepid sales growth,” said Amonthep Chawla, head of research at CIMBT.
“Higher non-performing loans could cause commercial banks to be more cautious on business loan approvals. Moreover, swelling household debt is making people more reserved on spending because working hours have not returned to normal, causing income to remain lower than before the pandemic.”
The ratio of household debt-to-GDP in the second quarter ballooned to 84%, an 18-year high, representing a value of 13.6 trillion baht. The ratio was an increase from 13.5 trillion baht or 80% of GDP…
