PATTAYA, Thailand – Behind upbeat economic forecasts and strong tourism arrival figures, a growing number of Thai households are facing a harsher reality: falling incomes, reduced spending, rising dependence on financial assistance, and debt burdens that continue to strain family finances. A new study by the Economic Intelligence Center (EIC) of the Siam Commercial Bank Group paints a troubling picture of household finances across the country, warning that mounting financial pressures could weigh on Thailand’s economic growth in the years ahead. Drawing on data from the National Statistical Office’s 2025 Household Socio-Economic Survey covering 57,600 households nationwide, SCB EIC found that Thai families remain trapped in a prolonged process of reducing debt while confronting deep structural vulnerabilities that are becoming increasingly difficult to ignore.
One of the most striking findings was that average household income fell for the first time in six years. Monthly household income declined 2.5 percent to 28,308 baht in 2025 from 29,030 baht in 2023, reflecting weaker earnings from employment and a sluggish economic recovery. As incomes weakened, more households turned to financial assistance to make ends meet. Income derived from aid and support payments increased by 19.4 percent compared with the previous survey, becoming an increasingly important lifeline for lower-income families.
For households earning less than 15,000 baht per month, assistance payments and non-cash benefits now account for nearly 60 percent of total income. Without those forms of support, the study found that income among the lowest-income households would actually have fallen by more than five percent. The report also highlighted signs of strain among wealthier households. Families earning more than 100,000 baht per month experienced the sharpest decline in income, with earnings dropping 7.6 percent, particularly from employment and investment-related sources.
While higher-income households generally have more diverse revenue streams and greater financial resilience, researchers said the trend suggests economic weakness is spreading beyond traditionally vulnerable groups. Faced with shrinking incomes, Thai households are increasingly tightening their belts. Average household spending fell by 5.4 percent between 2023 and 2025 as families cut discretionary purchases and postponed non-essential spending. Expenditures on consumer goods and services fell by nearly 10 percent, while spending on necessities such as food and beverages remained largely unchanged. Although overall household debt declined by 11.8 percent during the same period, researchers cautioned that the improvement does not necessarily reflect stronger financial health. Instead, it points to a nationwide effort to reduce debt amid tighter lending standards and weaker economic conditions.
More concerning was the finding that low-income households were the only group to increase borrowing. Families earning less than 15,000 baht per month saw debt rise by 1.9 percent, suggesting many continue to rely on borrowing simply to cover basic living expenses. The study found that more than half of all indebted households in Thailand now have insufficient income to cover their expenses. Among lower-income households carrying debt, nearly two-thirds reported that their income was not enough to meet monthly costs. Researchers warned that many households have already exhausted much of their ability to cut spending further.
With living costs expected to rise and inflation forecast to accelerate in 2026, financial pressures could intensify, particularly for families earning below 50,000 baht per month. SCB EIC said the growing vulnerability of Thai households poses a significant risk to future economic growth. Weak income growth, continued dependence on assistance, and lingering debt burdens could undermine private consumption, one of the country’s most important economic drivers. The research center argued that short-term government support should focus on helping lower- and middle-income households manage living costs while providing targeted debt relief measures such as loan restructuring and interest reductions for vulnerable borrowers.
Over the longer term, the report called for policies aimed at increasing household earning potential through workforce development, improved access to higher-value jobs, expanded investment opportunities, and stronger financial literacy. For many Thai families, however, the challenge remains immediate. The study suggests that despite headline indicators pointing to economic recovery, a large share of households are still struggling with a simple reality: earning less, spending less, and relying increasingly on outside help to get by.
