Thai household debt at record high amid sluggish economy, survey shows

” We’ve faced debt problems for a long time and we ca n’t solve anything”, university president Thanavath Phonvichai told a briefing.

Of the typical loan, 30 per cent was casual loans, upwards from about 20 per cent in 2023 as banks have tightened funds, Thanavath said.

Lower-income people who are unable to obtain bank loans are frequently hit by illegal loan sharks, with several people trapped by high interest rates and debt.

The Federation of Thai Industries has reduced the number of local car sales this year by 200, 000 to 550, 000, claiming that demand was being impacted by high family debt and stricter lending regulations.

Pichai Chunhavajira, the finance secretary, has stated that bill issues must be fixed urgently. He has said the central banks should &nbsp, help retail consumers, and that he will communicate with banks about providing more support to debtors.

New Prime Minister Paetongtarn Shinawatra, who took office last month, has promised to stimulate the economy straight away.

The government said on Monday it would distribute 145 billion baht ( US$ 4.3 billion ) of its “digital wallet” stimulus programme this month, earlier than scheduled, to support vulnerable groups.