(Adds detail, context) BANGKOK, Oct 28 (Reuters) – Thailand's economy is expected to improve in the first quarter of 2026 after a slowdown in the second half of 2025, the central bank chief said on Tuesday. Bank of Thailand Governor Vitai Ratanakorn also told a business seminar that the country needs to tackle its bad debt, with support measures set to be finalised over the next one or two weeks. The measures to address debt are expected to help about 2 million people, he said. The government has said it will spend 10 billion baht ($305.34 million) this month to buy bad debt, as part of its plans to revive its sluggish economy. Thailand's stubbornly high levels of household debt have shackled the economy for years, with the ratio of household debt to gross domestic product standing at 86.8% at the end of June, among the highest levels in Asia. The amount of debt stood at 16.3 trillion baht ($497.71 billion). The central bank forecasts that the Thai economy, which has lagged regional peers in recent years, will grow 2.2% this year and 1.6% in 2026. Growth last year stood at 2.5%. ($1 = 32.7500 baht) (Reporting by Orathai Sriring, Kitiphong Thaichareon and Thanadech Staporncharnchai; Editing by John Mair and David Stanway)
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