The Bank of Thailand warned that high household debt could prevent the economy from returning to its potential annual growth rate of 2.7%. (Reuters pic)

BANGKOK: Thai business owner Kavita Wongyakasem, 51, fears she may die before she has paid back all her debt.

The single mother of two owes 10 million baht (US$298,000) to seven financial institutions and a further 2.1 million baht to informal lenders, up from a total 8 million baht three years ago when Reuters first interviewed her.

Crippling household debt is ringing alarm bells for Thailand's economic growth ambitions at a time when inflationary pressures are also building. Average household debt across Thailand is at its highest in 18 years, stifling growth in an economy that has lagged regional peers.