Thai Household Debt Hits Record High Amid Economic Challenges
Thai household debt has surged to a record level of 606,378 baht per household, marking an 8.4% increase from last year, according to a University of the Thai Chamber of Commerce survey. The survey revealed that 69.9% of the debt comes from formal loans while 30% is from informal lending. The Bank of Thailand aims to reduce household debt to 89% of GDP by next year, down from the current 90.8%.
Thai household debt has surged to a record 606,378 baht per household, marking an 8.4% increase from last year, according to a University of the Thai Chamber of Commerce survey.
The survey, conducted in early September, revealed that 69.9% of the debt comes from formal loans while 30% is from informal lending, as more people hit their formal credit limits.
Monthly debt payments average 18,787 baht, with a delinquency rate of 71.6%.
This growing debt burden has affected Thailand's economy, which is lagging behind regional peers.
The Bank of Thailand aims to reduce household debt to 89% of GDP by next year, down from the current 90.8%.
New Prime Minister Paetongtarn Shinawatra has pledged immediate economic stimulus, and the government plans to distribute 145 billion baht to state welfare cardholders next week.
The survey, conducted in early September, revealed that 69.9% of the debt comes from formal loans while 30% is from informal lending, as more people hit their formal credit limits.
Monthly debt payments average 18,787 baht, with a delinquency rate of 71.6%.
This growing debt burden has affected Thailand's economy, which is lagging behind regional peers.
The Bank of Thailand aims to reduce household debt to 89% of GDP by next year, down from the current 90.8%.
New Prime Minister Paetongtarn Shinawatra has pledged immediate economic stimulus, and the government plans to distribute 145 billion baht to state welfare cardholders next week.
