BANGKOK (Reuters) – Thai workers’ debt levels have hit a 14-year high amid sluggish economic recovery and rising living costs driven by soaring fuel prices, a university survey showed on Thursday.
The debt of each worker’s household stood at 217,000 baht ($6,299) this year, up 6% from last year, restraining much-needed domestic spending, Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce, told a briefing.
“Workers’ debts are still increasing. If living costs keep rising, consumer spending will disappear and it will be very difficult for the economy to recover,” he said.
Southeast Asia’s second-largest economy may grow just 3% this year, down from a previous forecast of 3.5%, due to the fuel impact on consumption, Thanavath said.
At the end of 2021, Thailand’s overall household debt was 14.58 trillion baht ($423.2 billion), equivalent to 90.1% of gross domestic product (GDP), among the highest in Asia.
It could reach 93-95% of GDP this year, Thanavath said.
The survey also showed a majority of service sector workers were worried about losing jobs.
Thailand’s vital tourism sector may not return to pre-pandemic levels until 2026, according to central bank Governor Sethaput Suthiwartnarueput.
($1 = 34.45 baht)
(Reporting by Satawasin Staporncharnchai; Editing by Martin Petty)
