Seoul, Nov 15, : , South Korea’s household debt to gross domestic products (GDP) is the highest among the major economies of the world, according to a Monday report.This could lead to a reduction in consumption and a slowdown in economic growth.The country’s household debt stood at 104.2 per cent of its GDP as of end-June this year, the highest among 37 economies, Yonhap news agency reported citing the report by the Institute of International Finance.Yonhap news agency reported that the country’s household debt was at 104.2 percent of its GDP as of June this year.This is the highest level among 37 countries.
Hong Kong came next with 92 per cent, followed by the UK with 89.4 per cent, the US with 79.2 per cent, Thailand with 77.5 per cent, Malaysia with 73.4 per cent and Japan with 63.9 per cent.Hong Kong was next with 92%, followed by the UK at 89.4 percent, the US at 79.2 percent, Thailand at 77.5%, Malaysia at 73.4%, and Japan, which had 63.9 per cent.
South Korea’s ratio was up 6 percentage points from a year earlier, also the fastest growth rate.
South Korea had the highest growth rate, with a 6 percent increase in its ratio compared to a year ago.
South Korea is the only country among those economies that has more household debt than its economic size.South Korea is the only economy with more household debt than its GDP.
South Korea is striving to rein in household debt, which has grown at a faster clip since 2020 amid nationwide efforts to stimulate the economy from the Covid-19 pandemic.South Korea is trying to reduce household debt which has increased at a faster rate since 2020, amid national efforts to stimulate the economy following the Covid-19 pandemic.
Household credit reached a record high of 1,805.9 trillion won ($1.53 trillion) in June, up 41.2 trillion won from three months earlier, according to central bank data.According to data from the central bank, household credit hit a record high at 1,805.9 trillion won ($1.53 Trillion) in June.This is an increase of 41.2 trillion won over three months prior.
Household debt swelled 7.9 per cent on-year in 2020, a faster growth pace than a 4.1 per cent hike the previous year.The increase in household debt was 7.9 percent on-year in 2020.This is a faster rate than the 4.1% increase in the previous year.The debt jumped 10.3 per cent on-year during the second quarter of this year.The second quarter saw a 10.3% increase in debt.
Analysts said households’ debt service burden could rise down the road, weakening consumer consumption and becoming a drag on the recovery of Asia’s fourth-largest economy.
Analysts believe that households’ debt service burdens could increase in the future, which will weaken consumer consumption and cause a slowdown in the recovery of Asia’s fourth largest economy.
The report also showed South Korean companies’ debt ratio coming to 115 per cent in the second quarter of the year, the fifth highest among those economies.
According to the report, South Korean companies had a debt ratio of 115 percent in the second quarter.This is the fifth highest figure among all economies.
Hong Kong had the highest ratio with 247 per cent, trailed by China with 157.6 per cent and Singapore with 139.3 per cent.Hong Kong had the highest ratio of 247 percent, followed by China (157.6%) and Singapore (139.3%)
South Korea’s state debt-to-GDP ratio came to 47.1 per cent, 26th among the nations, pointing to its relatively good fiscal soundness.South Korea’s 26th-ranked nation ranked it 26th in its state debt-to GDP ratio at 47.1 percent, which is a sign of its relative fiscal soundness.
int/shs #SKoreas #world
