The Thai economy is poised for improvement in the first quarter of 2026 following a slowdown in the latter half of 2025, according to Bank of Thailand Governor Vitai Ratanakorn.
Speaking at a business seminar on Tuesday, Vitai emphasized the urgent need to address the country’s persistent bad debt problem, with new support measures slated for completion within the next one to two weeks.
These initiatives are expected to assist around 2 million individuals, Vitai said. The Thai government has already announced plans to allocate THB 10 billion ($305.34 million) this month to purchase bad debt as part of a broader effort to shore up the sluggish economy.
Thailand continues to struggle with elevated household debt, one of the highest in Asia, which has become a longstanding drag on economic growth. As of the end of June, the country’s household debt-to-GDP ratio reached 86.8%, with total household debt at THB 16.3 trillion ($497.71 billion).
BOT projects economic growth of 2.2% for this year, with the pace expected to slip to 1.6% in 2026. Last year, growth stood at 2.5%, leaving Southeast Asia’s second-largest economy trailing behind some of its regional peers.
