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Thailand’s financial sector faces rising risks as Non-Performing Loans (NPLs) spread from SMEs to large firms, pushing the NPL ratio close to 3%. The overall credit contraction for the third year highlights a deepening economic slowdown, with retail credit dropping sharply—particularly in housing and autos—and sectors like Real Estate, Tourism, and Manufacturing at high default risk.
Despite restructuring efforts, overdue debts are worsening, and delinquencies are now affecting medium and large enterprises. External shocks, such as the Thai-Cambodia conflict, further weaken the outlook, reducing export growth and slowing GDP to an estimated 1.6% in 2026.
High household debt and declining demand compound the crisis, affecting both consumer and business credit, and threatening continued economic contraction into the near future.