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Government spending on commodity subsidies has also been rising, with the doubling of support to rubber farmers last week in response to continuing protests coming on top of a rice-buying programme that has led to large stockpiles building up.
Another worry in Bangkok is levels of household debt, which have climbed from 55 per cent of gross domestic product in 2008 to more than 77 per cent last year. While analysts say this is partly due to a first-time car buyer scheme that offered customers tax rebates in an effort to stimulate the automotive industry, there are also wider concerns about consumers living beyond their means.
Patamaporn, the 35-year-old owner of a fashion shop, said she had started having debt problems after she had to borrow 500,000 baht from a bank in 2010, to renovate her business after it was burnt down during that year’s civil unrest. Since then, Patamaporn reckoned slow demand meant her monthly takings had halved to about 100,000 baht, out of which she has to service the bank loan, as well as repayments totalling 60,000 baht on three credit cards, her mortgage and her car.
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