Abstract
Thailand’s household debt grew by 0.05% year-over-year in Q4 2025, rising the debt-to-GDP ratio to 86.7%. This increase was primarily due to a rise in personal consumption loans, despite contractions in investment credit. Borrowing from savings cooperatives and pawnshops surged as households sought more flexible options amid strict lending from banks. The SCB EIC warns that debt-servicing risks may rise due to a fragile labor market, marked by increasing unemployment, and inflation pressures from the Middle East conflict impacting living costs and real incomes.
Summary
Recent Trends in Thailand’s Household Debt
Thailand’s household debt saw a slight increase of 0.05% year-on-year in Q4-2025, ending a three-quarter contraction. This brought the household debt-to-GDP ratio to 86.7%. The rise was primarily due to the growth in personal consumption loans, although credit for investments and business operations continued to decline.
Shifts in Borrowing Practices
There has been a notable rise in loans from savings cooperatives and pawnshops, indicating a change in borrowing preferences among Thai households. Many are opting for more accessible and flexible borrowing options as traditional financial institutions maintain strict lending regulations.
Future Debt Servicing Risks
The SCB EIC warns that Thai households may face heightened debt-servicing risks due to a weakening labor market and inflationary pressures from the ongoing conflict in the Middle East. These factors are contributing to rising living costs, eroding real incomes, and potentially impacting employment in various sectors.
