The National Economic and Social Development Council Warns of Gen Z Debt Surge Fueled by Influencers

Bangkok Business News: Thailand’s state planning agency has raised fresh concerns over a growing debt crisis among the country’s youngest consumers, warning that social media influencers and online shopping trends are fueling an unprecedented rise in borrowing and loan defaults among Generation Z.

The National Economic and Social Development Council (NESDC) has identified consumers under the age of 25 as the most financially vulnerable demographic, with debt levels rising faster than in any other age group. Officials say many young workers are increasingly making purchasing decisions based on recommendations from social media personalities and online reviews without carefully evaluating whether they can afford the repayments. The trend has emerged as a significant concern for policymakers as Thailand continues to grapple with high household debt levels and an uncertain economic outlook.

This Bangkok Business News report highlights how a seemingly stable macroeconomic picture is masking a rapidly deteriorating financial situation among first-time earners and young consumers.

Social Media’s Growing Role in Consumer Spending

The rise of digital platforms has transformed the way Thai consumers discover, evaluate, and purchase products. Social media networks such as TikTok, YouTube, Facebook, and Instagram have evolved beyond entertainment platforms into powerful commercial ecosystems where influencers play a major role in shaping consumer behavior.

For younger consumers in particular, recommendations from trusted online personalities often carry more influence than traditional advertising campaigns. Lifestyle content, product reviews, and viral trends are increasingly encouraging purchases that might not have otherwise been considered necessary.

The extent of this influence was highlighted by the Visa Gen Z Decoded 2025 study, which found that 58 percent of Thai Gen Z consumers trust recommendations from the digital creators they follow. The study also revealed that around half of respondents viewed brands promoted by influencers more favorably, demonstrating the growing power of social media personalities in shaping spending decisions.

While this digital ecosystem has created new opportunities for businesses and brands, policymakers are becoming increasingly concerned that it is also encouraging impulsive spending and excessive borrowing among young consumers.

Debt Growth Accelerates Among Young Borrowers

The financial consequences are already becoming visible in Thailand’s credit market.

According to data from the National Credit Bureau, outstanding credit card debt among consumers under the age of 25 surged by 13.5 percent in the fourth quarter of 2025 compared to the previous year. Personal loan debt within the same demographic increased by 11.5 percent.

Both figures represented the highest growth rates recorded across all age groups, underscoring the extent to which younger consumers are relying on borrowed money to finance purchases and lifestyles increasingly influenced by online trends.

NESDC Secretary-General Danucha Pichayanan warned that many young people are entering debt cycles before establishing financial stability. With limited savings and relatively modest incomes, first-time workers are particularly vulnerable to falling behind on repayments when economic conditions become challenging.

Officials fear that without stronger financial discipline and greater awareness of borrowing risks, debt problems among young consumers could continue to escalate in the coming years.

Broader Household Debt Challenges Persist

Thailand’s wider debt situation remains a major concern despite some signs of stability in parts of the financial sector.

By the end of 2025, total household debt stood at 16.44 trillion baht, equivalent to 86.7 percent of the country’s gross domestic product. While commercial bank non-performing loans edged down slightly to 3.23 percent, broader consumer credit indicators painted a far less encouraging picture.

Individual non-performing loans, defined as debts overdue by more than 90 days, rose by 7.6 percent year-on-year to 1.31 trillion baht. These troubled loans now account for nearly one-tenth of all consumer borrowing nationwide.

Meanwhile, special mention loans, which are overdue between 31 and 90 days and are considered at risk of default, reached approximately 480 billion baht. Financial analysts have warned that many of these accounts could slip into full default if economic conditions deteriorate further.

Debt growth has also varied across lending sectors. Personal loans and real estate lending continued to expand, supported partly by temporary policy measures, while automotive lending contracted for a ninth consecutive quarter amid weaker demand and tighter lending conditions.

Financial Literacy Alone May Not Be Enough

The NESDC is urging policymakers to strengthen financial literacy education from an early age, pointing to countries such as Australia where financial education is introduced during primary school to help young people manage money responsibly and resist social spending pressures.

However, officials acknowledge that education alone may not be sufficient to counter the influence of sophisticated digital marketing strategies and algorithm-driven advertising.

Danucha noted that when consumer desires override financial limitations, debt becomes almost inevitable. He warned that online reviews, influencer endorsements, and social media trends can make purchasing decisions appear effortless, encouraging consumers to spend beyond their means.

Young people, he said, must remain conscious of their actual income levels and avoid taking on unnecessary liabilities, particularly as economic growth remains constrained and financial pressures continue to mount.

Thailand’s emerging Gen Z debt crisis serves as a warning about the unintended consequences of the digital economy. While social media has revolutionized commerce and created new opportunities for businesses to reach consumers, it has also intensified spending pressures among younger generations. The latest warning from the NESDC underscores the need for a balanced approach that combines financial education, responsible lending practices, stronger consumer awareness, and personal financial discipline. Without meaningful action, a growing number of young Thais risk entering adulthood burdened by debt that could limit their financial opportunities and economic security for years to come.

For more details, visit the NESDC website at: https://www.nesdc.go.th/en/

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