Thai workers' debt at 14-year high amid price rises, slow growth: survey

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 (Apr 28).

The debt of each worker's household stood at 217,000 baht (S$8,723) this year, up 6 per cent 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.

South-east Asia's second-largest economy may grow just 3 per cent this year, down from a previous forecast of 3.5 per cent, due to the fuel impact on consumption, Thanavath said.

At the end of 2021, Thailand's overall household debt was 14.58 trillion baht (US$423.2 billion), equivalent to 90.1 per cent of gross domestic product (GDP), among the highest in Asia.

It could reach 93-95 per cent 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. REUTERS