SCB EIC finds Thai household income falls for first time in six years
Survey data analysed by SCB EIC show weaker income, lower spending, reliance on aid and still-high debt among Thai households.
- Average Thai household income fell by 2.5% in 2025, the first decline in six years, primarily due to a contraction in income from work.
- In response to lower income, households cut average spending by 5.4% and increased their reliance on assistance payments, which rose by 19.4%.
- While overall household debt decreased, debt among low-income groups (earning under THB 15,000/month) rose by 1.9% to cover living expenses.
- The survey found that more than half of all indebted households had insufficient income to cover their expenses, highlighting widespread financial vulnerability.
The SCB Economic Intelligence Centre (SCB EIC) of Siam Commercial Bank has set out its view on Thai household vulnerability based on findings from the latest nationwide household survey.
It found that incomes had shrunk, spending had been cut, and reliance on assistance and debt remained high despite some easing, putting pressure on consumption ahead.
Thai households are adjusting to a heavy debt burden and face six structural vulnerabilities that could become a drag on the Thai economy.
SCB EIC analysed data from the National Statistical Office’s 2025 Household Socio-Economic Survey, covering a nationwide sample of 57,600 households.
It found that Thai households were still adjusting from very high debt levels in a deleveraging process and were facing structural vulnerabilities that could become a major drag on the Thai economy in the period ahead.
The six key issues to watch are as follows:
Thai household income falls for the first time in six years
Average Thai household income in 2025 fell by 2.5% from the previous survey in 2023, mainly because income from work contracted.
This reflected a slow economic recovery and the problem of household income distribution being concentrated among high-income households.
Thai households are relying more on assistance to survive, especially low-income groups
Household income from assistance payments in 2025 rose 19.4% from 2023, in contrast to all other types of income, which declined.
Households earning no more than THB15,000 a month relied on assistance and non-monetary income combined for almost 60% of total income, reflecting uncertainty in income flows and the economic vulnerability of low-income households.
Thai households tighten belts as income falls, focusing on cuts to non-essential spending
Average household expenditure in 2025 fell by 5.4% from 2023 in line with weaker purchasing power.
Most households chose to cut non-essential spending, such as consumer goods expenditure, which fell by almost 10%, while trying to keep essential expenses from rising too sharply, such as food, beverages and tobacco, which still expanded slightly by 0.6%.
Households take on less debt overall, but low-income groups borrow more
The 2025 survey on household debt found that overall household debt fell by 11.8% from 2023, while household expenditure also declined.
This reflected deleveraging at the national level amid a slow economic recovery, stricter lending standards and efforts by the household sector to reduce its debt burden.
However, debt risk remained concentrated among households earning no more than THB15,000 a month, the only group whose debt rose, by 1.9%, partly to offset lower income from work and maintain living expenses.
More than half of indebted Thai households have insufficient income to cover expenses
More than 50% of indebted households had income insufficient to cover expenses, especially those earning less than THB15,000 a month, where the share was more than two-thirds.
Most households earning less than THB50,000 a month had to shoulder both essential living expenses and high debt burdens, tightening liquidity and limiting their ability to cope with living costs that are expected to rise in 2026 as inflation accelerates sharply.
Thai household vulnerability is a key risk to the economy ahead
A slow recovery in work income, increased reliance on assistance and cautious spending behaviour amid high debt burdens are key factors that will put pressure on private consumption and increase structural risks to the Thai economy in the period ahead.
SCB EIC said dealing with the challenges facing the household sector would require both short- and long-term measures.
The measures include:
Short-term measures
Private consumption will continue to be supported by the THB400 billion borrowing emergency decree, which should focus on targeted cost-of-living assistance for vulnerable groups, alongside appropriate debt-relief measures.
Long-term measures
Priority should be given to raising income, improving labour skills and strengthening financial resilience, to help reduce reliance on external assistance and borrowing for subsistence in the future.
