At last ! At last, there is something going up in Thailand : credit card spendings.
I’m not sure though… it’s a very good news. 😉
Let’s review the details.
Total number of credit cards (thai banks + foreign banks branches + non banks) grew 8,2 % in december 2008, compared to december 2007.
But what is really weird… it’s the unprecedented increase of… total spendings !
The total credit cards spendings reached a new record at 86,5 billions THB, that’s an increase of 8,5 % year-on-year (79,75 billions in december 2007), but a whooping 20,5 % increase compared to the previous month (71,76 billions in november).
Is it like a catch-up effect, after a weak november ?
We can’t discard a seasonal effect, end of the year, christmas, bonus paid… bla bla… the amount spent in december is always strong.
But those figures do not match with… consumption and other stats we have. For instance VAT collection (-6,91 % in december, read my article here).
You start to see where I want to go… ? If the consumption is decreasing… but credit card spendings are increasing… it means people pay less with cash… and more with credit ! They rely more on short term credit… Why ? Because plastic is fantastic ? 😉
Maybe. Or maybe because… they don’t have cash.
Anyway, it’s going to be interesting to follow closely the data for january… Rendez-vous march 10.
(Source Bank Of Thailand, table FI_CB_080_S2)