Tackling household debt alongside interest rate policy
Thailand faces a combination of short-term and structural challenges, including the lingering effects of global trade tensions and persistently high household debt levels, which continue to weigh on domestic consumption.
According to the World Bank’s July edition of the Thailand Economic Monitor, household debt has declined slightly to 87.9% of GDP but remains the highest in ASEAN. Much of this debt is non-productive, such as consumer loans.
Roong said that many Thais, especially younger generations, are incurring debt earlier and for longer periods. Some retirees also remain trapped in the debt cycle due to inadequate financial literacy or unexpected life events.
To address…