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Increasing households’ debt burden threatens Thailand’s economic growth
Thailand, like many other countries, has found itself caught in a challenging economic cycle. The combination of low GDP growth and high household debt has become a persistent issue that policymakers and citizens alike grapple with.
- Thailand continues to face a concerning level of household debt, reaching nearly 91 percent of the country’s gross domestic product (GDP) by the third quarter of the previous year.
- This is primarily attributed to an accumulation of debt following the impact of COVID-19 on the country in 2020.
- The central bank is cautious about lowering interest rates to avoid further debt accumulation and instead focuses on debt restructuring to support debtors.
- Vulnerable groups are encouraged to join debt restructuring programs, but concerns linger over the potential degradation of special mention loans into non-performing loans, particularly for middle and lower-income…
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