According to a report published by Kasicorn Bank, in 2022, the level of household debt in Thailand continued to grow and reached 15.09 trillion. baht, which is 180 billion baht more than in the previous quarter. Despite this, the household debt-to-GDP ratio declined marginally from 87% to 86.9% in the fourth quarter of 2022.
However, Thailand's high debt situation remains a concern for the Bank of Thailand and other economic institutions in the country. Despite the decrease in the debt-to-GDP ratio, this is happening too slowly, and the level of debt obligations of households continues to exceed 80% of GDP, which is considered a critical point.
To address the problem of high levels of household debt, the Bank of Thailand plans to take additional measures such as restricting lending and applying risky pricing. Macroprudential measures are aimed at ensuring the stability of the financial system as a whole and preventing significant disruption in the credit and other financial services necessary for sustainable economic growth.
Some economists believe that the problem of high levels of household debt in Thailand will not be solved without the introduction of government measures aimed at increasing the stability of incomes of citizens and the availability of low-cost loans. Moreover, stopping the accumulation of additional debt and reducing unnecessary borrowing other than those needed for life and business is also an important measure to solve the problem.
