Thai Household Earnings Slip for First Time Since 2019

Bangkok Business News: Thailand’s household sector is facing growing financial pressure after average household earnings declined for the first time since 2019, according to the latest assessment by the SCB Economic Intelligence Centre (SCB EIC). The findings highlight weakening income growth, reduced spending power, rising dependence on assistance programmes and lingering debt burdens that could weigh on economic expansion in the years ahead.

Drawing on data from the National Statistical Office’s 2025 Household Socio-Economic Survey, which covered 57,600 households nationwide, SCB EIC found that average household income fell by 2.5 percent compared with 2023. The decline was driven primarily by lower income from work and business activities amid a slower-than-expected economic recovery. This Bangkok Business News report also reflects a broader issue of uneven income distribution, with gains remaining concentrated among higher-income households while many lower- and middle-income families continue to struggle.

Assistance Payments Become Increasingly Important

The survey revealed that assistance payments have become a growing source of support for many Thai households. Income derived from assistance programmes increased by 19.4 percent from 2023 levels, standing in sharp contrast to most other income sources, which recorded declines.

The trend was particularly evident among households earning less than THB15,000 per month. For this group, assistance payments and non-cash income accounted for nearly 60 percent of total earnings, underscoring the fragile financial position of lower-income families and their increasing reliance on external support to meet daily needs.

Families Tighten Spending as Purchasing Power Weakens

With earnings under pressure, households responded by reducing expenditures. Average household spending fell by 5.4 percent between 2023 and 2025 as consumers adopted a more cautious approach to spending.

Most cuts were concentrated in discretionary purchases. Expenditure on consumer goods declined by almost 10 percent, reflecting efforts to conserve cash and prioritise necessities. Essential spending categories, including food, beverages and tobacco, continued to rise modestly, increasing by 0.6 percent as households sought to maintain basic living standards despite declining purchasing power.

Debt Levels Ease Overall but Risks Remain

While the survey found that overall household debt declined by 11.8 percent from 2023, SCB EIC cautioned that the headline improvement masks ongoing risks within vulnerable income groups.

The reduction in total debt reflects a broader deleveraging process driven by stricter lending standards, slower borrowing activity and efforts by households to reduce financial obligations. However, households earning less than THB15,000 per month were the only income group to record an increase in debt, with borrowings rising by 1.9 percent. Many families in this segment took on additional debt to offset declining work income and maintain essential living expenses.

More Than Half of Indebted Households Struggle

Perhaps the most concerning finding was that more than half of indebted households reported having insufficient income to cover their expenses. Among households earning below THB15,000 per month, the proportion rose to more than two-thirds.

The data suggest that a large share of Thai families continue to face liquidity pressures as they balance essential living costs against debt repayments. Households earning below THB50,000 per month appear particularly vulnerable, with limited financial flexibility and reduced capacity to cope with future increases in living costs, especially if inflation accelerates during 2026.

A Growing Challenge for The Thai Economy

SCB EIC identified six structural vulnerabilities affecting Thai households, including falling income, increased dependence on assistance, weaker purchasing power, concentrated debt risks, inadequate income coverage and broader financial fragility. Together, these factors could place increasing pressure on private consumption, one of the key engines of Thailand’s economy.

To address these concerns, SCB EIC recommends a combination of short-term and long-term policy measures. In the near term, the organization believes support from the government’s THB400 billion borrowing emergency decree should be directed toward targeted cost-of-living assistance and debt-relief measures for vulnerable groups. Over the longer term, greater emphasis should be placed on raising household income, improving workforce skills and strengthening financial resilience to reduce dependence on assistance programmes and debt-funded consumption.

Thailand’s latest household survey paints a sobering picture of an economy where many families are still struggling to regain financial stability despite broader signs of recovery. Unless income growth strengthens and household resilience improves, persistent financial vulnerabilities could continue to limit consumer spending, slow economic momentum and create deeper structural challenges for the country in the years ahead.

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