Fitch Ratings’ 2025 briefing on Thailand’s economic and consumer finance outlook suggests potential constraints on the consumer finance sector’s growth due to significant household debt.
The briefing also noted ongoing risks concerning asset quality, though these are expected to be manageable for Fitch’s rated entities.
While anticipating a sluggish economic recovery in 2025 partly due to potential US tariffs, The Siam Commercial Bank highlighted tourism and government expenditure as mitigating factors.
Fitch Ratings anticipates a largely stable operating environment for consumer finance in 2025, supported by low unemployment and easing credit and funding cost pressures. Larger lenders with established operations are better placed to sustain their competitive advantage and profitability, and while regulations address household debt, increased income is seen as crucial for substantial progress.
