Household debt crisis looms as rates hike

A sign advertises interest rates at a money expo. Household debt now exceeds 90% of Thai GDP as households struggle to make ends meet. (Bangkok Post file photo)

With interest rates set to rise in the second half of the year, increased household debt could deal a heavy blow to the Thai economy, weakening consumer purchasing power and slowing economic growth, according to KKP Research.

Thailand's household debt now exceeds 90% of Thai gross domestic product (GDP), ranked 11th-highest in the world, as households struggle to make ends meet.