Thailand’s Household Debt Soaring to 91.4% of GDP

Thailand’s household debt to reach 16.9 trillion baht, 91.4% of GDP. Non-performing loans and slow economic recovery pose risks.

Thailand’s household debt is projected to reach 16.9 trillion baht, or 91.4% of GDP, by the end of this year, with non-performing loans (NPLs) in the banking system estimated at about 152 billion baht, according to TMB Thanachart Analytics.

As of the end of the third quarter last year, household debt stood at 16.2 trillion baht, accounting for 90.9% of GDP, up 3.4% from the same period the previous year.

Rising Non-Performing Loans

The 3.4% increase was lower than the previous year due to tightened lending practices by commercial banks. However, credit card loans, leasing, and personal loans increased at a higher rate.

Non-performing loans in the banking system grew by 2.79% to about 152 billion baht, while outstanding car lease repayments overdue by 1-3…