Lower Car Sales, Less Bank Profits Grip Thailand

Urgent problems for Thailand's next government were highlighted in half-year earnings posted late last week by the country's biggest banks, who warned of the uneven economic and limited tourism recovery, and downward pressure on consumption from high living costs and debt burdens, Francesca Regalado reported for Nikkei Asia.

Photo Insert: Car sales saw pronounced effects from the persistent debt crunch, with auto loans seeing the fastest rise in delinquent payments.

Car sales saw pronounced effects from the persistent debt crunch, with auto loans seeing the fastest rise in delinquent payments.

Lower bank earnings also indicate more trouble for the economy as more Thais save money, dampening demand and reducing consumer spending.

Kiatnakin Phatra Bank, where hire purchase loans comprise 48% of total loans, reported a 5% annual decrease in business volume in the first half of 2023 as car sales were down 4.9% year-on-year in the first five months of the year.

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