The Bank of Thailand says that the Thai economy will face big problems in 2023 if the issue of raising the interest rate is not resolved.
Inflation tends to gradually decrease, in November, it was at the level of 5.5%. Inflation is expected to reach the target range of 1-3% in the second half of 2023, while the economic recovery may continue.
Another problem is maintaining the stability of the financial system. there is still an increase in the debt of the population. The implementation of the policy of the Bank of Thailand should find a balance to monitor both inflation and take care of the recovery of the economy and the financial system. However, the debts of the population are a big problem. Household debt accounts for almost 90% of GDP.
The fact that household debt is still at such a high level may lead to a slowdown in the economic recovery. Household debt should be at least 80%, so it is necessary to take various measures to ensure that household debt returns to a sustainable level.