Thailand’s household debt swells amid policy stagnation concerns
It has been nearly two months since Thai voters crowned a newish, pro-democratic Move Forward Party the winner in the May 14 general election. While Thailand awaits the formation of a new government, its long-standing headache of excessive household debt continues to worsen, making the central bank’s job more difficult.
On July 3, the Bank of Thailand announced the country’s household debt had reached 16 trillion baht ($455 billion) in the first quarter of 2023, or 90.6% of the kingdom’s gross domestic product, a further deterioration from the 87% recorded in the fourth quarter of 2022. Redefinition of the household debt by the central bank also contributed to the increase of the ratio in the latest figure.
