Debt, signs of drought squeeze Thai economy

[DOI SAKET, Thailand] The junta that seized power in Thailand four months ago has used martial law and a crackdown on its critics to subdue the politically polarised country.

But it may have more difficulty handling a fragile economy.

Household debt is at a record high in Thailand, exports are flat, the number of tourists is well below last year's count and experts say low levels at dams across the country are foretelling a severe water shortage. The central bank predicts economic growth of 1.5 per cent this year.