Now, the problem could be excessive debt built up by individuals. The ratio of household debt to GDP rose from 55.1 per cent in 2008 to 82.3 per cent at the end of last year, or Bt9.79 trillion. According to the National Economic and Social Development Board, average household debt rose from Bt104,600 in 1997 to Bt159,490 as of June 2013.
In short, Thais have less ability to spend this year, no matter how much they want to. Even though most Thais reckon the political environment has improved, few have the ability to spend. Domestic demand is not expected to turbo-boost the economic engine, while the other two potential boosters - exports and investment - remain slow.
In 1997, foreign investors were to blame. Thailand was then an Asian Tiger, after years of dramatic economic growth. Foreign investors were eager to buy Thai companies' bonds. The sustained period of rapid growth caused investors to ignore the vulnerability of the fixed exchange rate and forget that capital inflows could become outflows in a hurry