IMF pushes for stronger Thai financial security

The International Monetary Fund (IMF) is urging Thailand to strengthen household financial security to mitigate the country’s persistently high household debt.

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In its Country Focus report published on April 9, the IMF said more than half of Thai workers are not formally employed, which deprives them of job security and social protection. This leaves Thai households vulnerable to economic shocks and income disruptions, often needing to borrowto cover their basic living expenses.

“Strengthening social protection would not only help reduce inequality, but also curb household debt, particularly informal lending, which in turn could mitigate financial stability risks,’ the IMF stated.

Even though Thailand’s household debt-to-GDP ratio declined to 89% from its peak level during the pandemic, the ratio remains historically high.