Thai household debt trap tests growth ambitions as Bangkok hosts IMF
Average household debt in Thailand has reached nearly 800,000 baht, with household debt at 85% of GDP and only five million of 27 million borrowers eligible for further credit.
Bangkok is bracing for the impact of Thai households drowning in debt, as the economy strives for growth. Kavita Wongyakasem, a Bangkok business owner, is one of many facing a crushing financial burden. With 10 million baht (US$298,000) spread across seven financial institutions and informal lenders, she worries she may die before settling her debt.
Tripled since 2020, household debt now tops 18-year highs, hindering Thailand's growth prospects. The International Monetary Fund (IMF) and World Bank Group are set to meet in Bangkok, highlighting the country's economic transition, but warn of risks from excessive debt. Thailand's debt-to-GDP ratio of 85.2% is among the highest in Asia, and experts say solving the household debt issue is critical to achieving potential growth of 2.7%.
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- Thai household debt trap tests growth ambitions as Bangkok hosts IMF freemalaysiatoday.com
