The Federation of Thai Industries (FTI) has estimated that recent floods in Northern and Northeastern Thailand have caused economic damage amounting to between 30 and 50 billion baht.
Key Takeways
- The FTI called for government action, including economic stimulus measures such as tax incentives to encourage spending and promote domestic tourism. These measures are deemed urgent due to the widespread impact on households, agriculture, industry, and tourism, contributing to an economic slowdown.
- In September, the industrial confidence index dropped to 87.1 due to the flood’s effects, reduced domestic purchasing power, high household debt, and a slowdown in durable goods sales.
- Vice Chairman Nava Chantanasurakon highlighted that tight credit from financial institutions and delayed government projects are impacting sales in construction materials. Additional challenges include Chinese goods dumping and the baht’s rapid appreciation, affecting manufacturing and exports.
Nava Chantanasurakon, Vice Chairman of the FTI, provided figures highlighting the urgent need for government intervention. The floods have extensively impacted households, agriculture, industry, and tourism, contributing to an economic slowdown. A recent FTI survey indicated a decline in the industrial confidence index, reflecting pressure from the floods and other challenges such as weak domestic purchasing power, high household debt, and a decline in sales of durable goods.
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