Thai Household Debt Surges, SCB EIC Warns of Labor Market Fragility and Soaring Cost of Living

Thansettakij•Economy•2d ago

Reader Briefing

SCB EIC highlights increasing risks for Thai household debt due to a fragile labor market and rapidly rising cost of living, with household debt growing slightly in Q4/2025.

•Thai household debt is at high risk due to a fragile labor market and escalating cost of living.
•Household debt grew by 0.05% in Q4/2025, reaching 86.7% of GDP by the end of 2025, primarily driven by consumer spending debt.
•Households are increasingly relying on easier-to-access loan sources like savings cooperatives and pawnshops as major financial institutions maintain strict lending policies.

Overview

•As of the end of 2025, Thai household debt to GDP increased to 86.7%.
•Thai household debt in Q4/2025 was 16.44 trillion baht, an increase of 0.05% compared to the same period last year.
•Household debt has returned to growth after contracting for three consecutive quarters, indicating sustained reliance on borrowing for daily expenses.
•Personal consumption loans, a primary driver of debt growth, reached 12.72 trillion baht, an increase of approximately 119 billion baht from the previous quarter.
•Households continue to depend on loans to manage daily spending due to slow income recovery.
•Loans for car and motorcycle hire purchase, education, and business operations continue to shrink.
•SCB EIC anticipates that risks to household debt repayment are likely to increase in the future.
•Private financial institutions' loans continue to shrink, reflecting caution in lending, particularly among commercial banks.

Full article content is available on the original source.

Read on Thansettakij (Thai Version)View in Google Translate

Source: Thansettakij (Original)

Key Entities

Organization

SCB EIC

Economic research institute providing analysis on Thailand's economic conditions.