Thailand’s household debt, already among the highest in emerging Asia, is expected to rise further as a fresh Covid outbreak curbs incomes, weighing on consumer spending and heightening financial-stability risks.
Household debt stood at 13.8 trillion baht, or 87% of gross domestic product, at the end of September 2020, up from 79% a year earlier, according to Bank of Thailand data. Debt levels will be one of the risks the BoT considers in its policy decision on Wednesday after its latest meeting minutes cited household finances as a factor that warrants attention.
Even before the pandemic, “we…
